Cover
Cover | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Entity Registrant Name | HUALE ACOUSTICS Ltd |
Entity Central Index Key | 0001636760 |
Document Type | POS AM |
Amendment Flag | true |
Amendment Description | This Post-Effective Amendment No. 1 (this "Post-Effective Amendment") to Huale Acoustics Limited's Registration Statement on Form F-1 (File No. 333-251850) (the "Registration Statement"), as declared effective by the Securities and Exchange Commission (the "SEC") on March 3, 2021, is being filed pursuant to the undertakings in Item 9.1(b) of the Registration Statement to update and supplement the information contained in the Registration Statement and the prospectus included therein, to include the information contained in the Registrant's Annual Report on Form 20-F for the fiscal year ended December 31, 2020 filed with the SEC on June 28, 2021. The information included in this filing updates the Registration Statement and the prospectus contained therein. No additional securities are being registered under this Post-Effective Amendment. All applicable registration fees were paid at the time of the original filing of the Registration Statement. |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | |||
Cash and cash equivalents | $ 15,219 | $ 32,040 | $ 120,126 |
Accounts receivable | 13,683 | 13,531 | 1,434 |
Prepaid expenses and advance payment to suppliers | 238,239 | 199,213 | 96,717 |
Other receivables, net | 95,970 | 96,253 | 134,112 |
Inventory | 55,804 | 95,953 | 138,211 |
Related party receivable | 20,140 | 64,496 | 80,270 |
Total current assets | 439,055 | 501,486 | 570,870 |
Non-current assets | |||
Plant and equipment, net | 964 | 1,236 | 367,484 |
Right-of-use assets | 277,516 | 264,164 | |
Goodwill | 49,564 | ||
Total non-current assets | 278,480 | 1,236 | 681,212 |
Total Assets | 717,535 | 502,722 | 1,252,082 |
Current liabilities | |||
Accounts payable | 86,963 | 85,280 | 57,303 |
Other payable and accruals | 577,224 | 520,940 | 295,618 |
Deferred revenue | 335,420 | 379,079 | 456,112 |
Related party payable | 553,814 | 374,553 | 195,214 |
Deferred subsidy income | 154,683 | 181,639 | 107,488 |
Operating lease liabilities | 248,942 | 177,641 | 102,160 |
Total current liabilities | 1,957,046 | 1,719,132 | 1,213,895 |
Non-current liabilities | |||
Deferred subsidy income | 170,190 | ||
Operating lease liabilities | 181,375 | 166,444 | |
Total non-current liabilities | 181,375 | 336,634 | |
Total Liabilities | 2,138,421 | 1,719,132 | 1,550,529 |
Stockholders' (Deficit) Equity | |||
Common stock | 4,111 | 4,111 | 3,625 |
Additional paid-in capital | 297,405 | 297,405 | 200,353 |
Accumulated deficit | (1,533,952) | (1,346,967) | (482,847) |
Foreign currency translation reserve | (61,154) | (46,173) | (1,711) |
Non-controlling interest | (127,296) | (124,786) | (17,867) |
Total (Deficit) Equity | (1,420,886) | (1,216,410) | (298,447) |
Total Liabilities and (Deficit) Equity | $ 717,535 | $ 502,722 | $ 1,252,082 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 289,606 | $ 136,394 | $ 768,518 | $ 505,571 |
Cost of revenues | (212,526) | (115,220) | (591,077) | (446,542) |
Gross profit | 77,080 | 21,174 | 177,441 | 59,029 |
Operating expenses: | ||||
Selling and marketing expenses | (587) | (279) | (9,150) | (6,933) |
General and administrative expenses | (286,488) | (353,637) | (789,510) | (464,629) |
Total operating expenses | (287,075) | (353,916) | (798,660) | (471,562) |
Operating loss | (209,995) | (332,742) | (621,219) | (412,533) |
Other income (expenses): | ||||
Interest income | 35 | 36 | 9,678 | 323 |
Other income | 29,229 | 54,632 | 107,068 | 133,175 |
Interest expense | (5,019) | (8,749) | (9,626) | (5,620) |
Other expense | (444,132) | |||
Total other income and (expenses) | 24,245 | 45,919 | (346,272) | 127,878 |
Loss before taxes from operations | (185,750) | (286,823) | (967,491) | (284,655) |
Provision for income taxes | ||||
Net loss | (185,750) | (286,823) | (967,491) | (284,655) |
Other comprehensive income: | ||||
Foreign currency translation loss | (18,727) | 8,795 | (48,010) | (1,875) |
Total comprehensive loss | (204,477) | (278,028) | (1,015,501) | (286,530) |
Net loss attributable to : Owners of the Company | (186,985) | (266,344) | (864,120) | (279,526) |
Net loss attributable to : Non-controlling interest | 1,235 | (20,479) | (103,371) | (5,129) |
Net loss | (185,750) | (286,823) | (967,491) | (284,655) |
Total comprehensive loss attributable to : Owners of the Company | (201,967) | (259,074) | (908,582) | (281,043) |
Total comprehensive loss attributable to : Non-controlling interest | (2,510) | (18,954) | (106,919) | (5,487) |
Total comprehensive loss | $ (204,477) | $ (278,028) | $ (1,015,501) | $ (286,530) |
Basic and diluted earnings (loss) per ordinary share | $ 0 | $ (0.01) | $ (0.02) | $ (0.01) |
Weighted average number of common shares outstanding - Basic and diluted | 41,106,775 | 36,250,000 | 41,106,775 | 36,250,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Foreign Currency Translation Reserve [Member] | Non - Controlling Interest [Member] | Total |
Balance at Dec. 31, 2018 | $ 3,625 | $ 200,353 | $ (203,321) | $ (194) | $ 463 | |
Balance at Dec. 31, 2018 | 3,625 | 200,353 | (203,321) | (194) | 463 | |
NCI on acquisition of subsidiary | (12,380) | (12,380) | ||||
Issuance of share | ||||||
Net loss | (279,526) | (5,129) | (284,655) | |||
Other comprehensive income | (1,517) | (358) | (1,875) | |||
Foreign currency translation adjustment | (1,875) | |||||
Total comprehensive loss for the period | (286,530) | |||||
Balance at Dec. 31, 2019 | 3,625 | 200,353 | (482,847) | (1,711) | (17,867) | (298,447) |
NCI on acquisition of subsidiary | ||||||
Issuance of share | ||||||
Net loss | (266,344) | (20,479) | (286,823) | |||
Other comprehensive income | ||||||
Foreign currency translation adjustment | 7,270 | 1,525 | 8,795 | |||
Total comprehensive loss for the period | (266,344) | 7,270 | (18,954) | (278,028) | ||
Balance at Jun. 30, 2020 | 3,625 | 200,353 | (749,191) | (5,559) | (36,821) | (576,475) |
Balance at Dec. 31, 2019 | 3,625 | 200,353 | (482,847) | (1,711) | (17,867) | (298,447) |
NCI on acquisition of subsidiary | ||||||
Issuance of share | 486 | 97,052 | 97,538 | |||
Net loss | (864,120) | (103,371) | (967,491) | |||
Other comprehensive income | (44,462) | (3,548) | (48,010) | |||
Foreign currency translation adjustment | (48,010) | |||||
Total comprehensive loss for the period | (1,015,501) | |||||
Balance at Dec. 31, 2020 | 4,111 | 297,405 | (1,346,967) | (46,173) | (124,786) | (1,216,410) |
NCI on acquisition of subsidiary | ||||||
Issuance of share | ||||||
Net loss | (186,985) | 1,235 | (185,750) | |||
Other comprehensive income | ||||||
Foreign currency translation adjustment | (14,982) | (3,745) | (18,727) | |||
Total comprehensive loss for the period | (186,985) | (61,154) | (127,296) | (204,477) | ||
Balance at Jun. 30, 2021 | $ 4,111 | $ 297,405 | $ (1,533,952) | $ (61,154) | $ (127,296) | $ (1,420,886) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||||
Loss from operations before taxation | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) |
Adjustments for non-cash items: | ||||
Add: Depreciation of plant and equipment | 272 | 70,245 | 142,219 | 71,736 |
Depreciation of right-of-use assets | 25,035 | 50,651 | 102,890 | 43,653 |
Right-of-use asset written off | 161,274 | |||
Impairment of goodwill | 49,564 | |||
Plant and equipment written off | 235,202 | |||
Interest expense | 5,019 | 8,749 | 9,626 | 5,620 |
Operating cash flows before changes in working capital | (155,424) | (157,178) | (266,716) | (163,646) |
Cash flows from operating activities | ||||
Increase in accounts and other receivables | 131 | (38,807) | 33,084 | (137,063) |
Increase in inventory | 40,149 | (70,536) | 48,657 | (94,425) |
Increase in prepayments and other current assets | (39,026) | (10,665) | (89,210) | (84,717) |
Increase in payables and other current liabilities | (67,542) | 31,819 | (60,507) | 455,217 |
Net cash used in operating activities | (221,712) | (245,367) | (334,692) | (24,634) |
Cash flows from investing activities | ||||
Acquisition of subsidiary, net of cash acquired | 27,764 | |||
Purchase of plant and equipment | (6,177) | (11,173) | (4,200) | |
Cash used in investing activities | (6,177) | (11,173) | 23,564 | |
Cash flows from financing activities | ||||
Proceeds from issuance of shares | 97,538 | |||
Payment to lease creditor | (14,193) | |||
Changes in related party balances, net | 223,618 | 443,915 | 174,434 | (16,097) |
Cash provided by financing activities | 223,618 | 443,915 | 257,779 | (16,097) |
Net increase of cash and cash equivalents | 1,906 | 192,371 | (88,086) | (17,167) |
Effect of foreign currency translation on cash and cash equivalents | (18,727) | 4,973 | ||
Cash and cash equivalents-beginning | 32,040 | 120,126 | 120,126 | 137,293 |
Cash and cash equivalents-end | 15,219 | 317,470 | 32,040 | 120,126 |
Supplementary cash flow information: | ||||
Interest received | 35 | 36 | 418 | 323 |
Interest paid | $ (5,019) | $ (8,749) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Huale Group Co.Limited) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 120,126 | |
Accounts receivable | 1,434 | |
Prepaid expenses, taxes and other current assets | 96,717 | |
Other receivables, net | 134,112 | |
Inventory | 138,211 | |
Related party receivable | 80,270 | |
Total current assets | 570,870 | |
Non-current assets | ||
Plant and equipment, net | 367,484 | |
Right-of-use assets | 264,164 | |
Goodwill | 49,564 | |
Total non-current assets | 681,212 | |
Total Assets | 1,252,082 | |
Current liabilities | ||
Accounts payable | 57,303 | |
Other payable and accruals | 295,618 | |
Deferred revenue | 456,112 | |
Related party payable | 195,214 | |
Deferred subsidy income | 107,488 | |
Operating lease liabilities | 102,160 | |
Total current liabilities | 1,213,895 | |
Non-current liabilities | ||
Deferred subsidy income | 170,190 | |
Operating lease liabilities | 166,444 | |
Total non-current liabilities | 336,634 | |
Total Liabilities | 1,550,529 | |
Stockholders' (Deficit) Equity | ||
Common stock | 3,625 | |
Accumulated deficit | (482,847) | |
Foreign currency translation reserve | (1,711) | |
Non-controlling interest | (17,867) | |
Total (Deficit) Equity | $ (576,475) | (298,447) |
Total Liabilities and (Deficit) Equity | 1,252,082 | |
Huale Group Co. Limited [Member] | ||
Current assets | ||
Cash and cash equivalents | 317,470 | 120,126 |
Accounts receivable | 1,415 | 1,434 |
Prepaid expenses, taxes and other current assets | 105,939 | 96,717 |
Other receivables, net | 159,905 | 134,112 |
Inventory | 206,405 | 138,211 |
Related party receivable | 445,585 | 162,054 |
Total current assets | 1,236,719 | 652,654 |
Non-current assets | ||
Plant and equipment, net | 298,140 | 367,484 |
Right-of-use assets | 209,977 | 264,164 |
Goodwill | 49,564 | 49,564 |
Total non-current assets | 557,681 | 681,212 |
Total Assets | 1,794,400 | 1,333,866 |
Current liabilities | ||
Accounts payable | 84,860 | 57,303 |
Other payable and accruals | 372,394 | 295,618 |
Deferred revenue | 474,272 | 456,112 |
Related party payable | 791,283 | 105,942 |
Deferred subsidy income | 105,945 | 107,488 |
Operating lease liabilities | 102,902 | 102,159 |
Total current liabilities | 1,931,656 | 1,124,622 |
Non-current liabilities | ||
Deferred subsidy income | 114,774 | 170,190 |
Operating lease liabilities | 112,045 | 166,444 |
Total non-current liabilities | 226,819 | 336,634 |
Total Liabilities | 2,158,475 | 1,461,256 |
Stockholders' (Deficit) Equity | ||
Common stock | 100,000 | 100,000 |
Accumulated deficit | (432,813) | (207,812) |
Foreign currency translation reserve | 5,559 | (1,711) |
Non-controlling interest | (36,821) | (17,867) |
Total (Deficit) Equity | (364,075) | (127,390) |
Total Liabilities and (Deficit) Equity | $ 1,794,400 | $ 1,333,866 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Huale Group Co.Limited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 136,394 | |
Cost of revenues | (115,220) | |
Gross profit | 21,174 | |
Operating expenses: | ||
Selling and marketing expenses | (279) | |
General and administrative expenses | (353,637) | |
Total operating expenses | 353,916 | |
Operating loss | (332,742) | |
Other income (expenses): | ||
Other income | 54,632 | |
Interest expense | (8,749) | |
Total other income and (expenses) | 45,919 | |
Loss before taxes from operations | (286,823) | |
Provision for income taxes | ||
Net loss | (286,823) | |
Other comprehensive income: | ||
Foreign currency translation income (loss) | 8,795 | |
Total comprehensive loss | (278,028) | |
Net loss attributable to : Non-controlling interest | (20,479) | |
Net loss | (286,823) | |
Total comprehensive loss attributable to : Owners of the Company | (259,074) | |
Total comprehensive loss attributable to : Non-controlling interest | (18,954) | |
Total comprehensive loss | (278,028) | |
Huale Group Co. Limited [Member] | ||
Revenues | 136,394 | |
Cost of revenues | (115,220) | |
Gross profit | 21,174 | |
Operating expenses: | ||
Selling and marketing expenses | (279) | |
General and administrative expenses | (312,294) | (28,433) |
Total operating expenses | (312,573) | (28,433) |
Operating loss | (291,399) | (28,433) |
Other income (expenses): | ||
Interest income | 36 | 168 |
Other income | 54,632 | |
Interest expense | (8,749) | |
Total other income and (expenses) | 45,919 | 168 |
Loss before taxes from operations | (245,480) | (28,265) |
Provision for income taxes | ||
Net loss | (245,480) | (28,265) |
Other comprehensive income: | ||
Foreign currency translation income (loss) | 8,795 | 515 |
Total comprehensive loss | (236,685) | (27,750) |
Net loss attributable to : Owners of the Company | (225,001) | (28,265) |
Net loss attributable to : Non-controlling interest | (20,479) | |
Total comprehensive loss attributable to : Owners of the Company | (217,731) | (27,750) |
Total comprehensive loss attributable to : Non-controlling interest | (18,954) | |
Total comprehensive loss | $ (236,685) | $ (27,750) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Huale Group Co.Limited) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss from operations before taxation | $ (286,823) | $ (967,491) | $ (284,655) | |
Adjustments for: | ||||
Depreciation of plant and equipment | 70,245 | 142,219 | 71,736 | |
Depreciation of right-of-use assets | 50,651 | 102,890 | 43,653 | |
Interest expense | 8,749 | 9,626 | 5,620 | |
Operating cash flows before changes in working capital | (157,178) | (266,716) | (163,646) | |
Cash flows from operating activities | ||||
Increase in accounts and other receivables | (38,807) | 33,084 | (137,063) | |
Increase in inventory | (70,536) | 48,657 | (94,425) | |
Increase in prepayments and other current assets | (10,665) | (89,210) | (84,717) | |
Increase in payables and other current liabilities | 31,819 | (60,507) | 455,217 | |
Net cash used in operating activities | (245,367) | (334,692) | (24,634) | |
Cash flows from investing activities | ||||
Acquisition of subsidiary, net of cash acquired | 27,764 | |||
Purchase of plant and equipment | (6,177) | (11,173) | (4,200) | |
Net cash used in investing activities | (6,177) | (11,173) | 23,564 | |
Cash flows from financing activities | ||||
Changes in related party balances, net | 443,915 | 174,434 | (16,097) | |
Net cash provided by financing activities | 443,915 | 257,779 | (16,097) | |
Net increase (decrease) of cash and cash equivalents | 192,371 | (88,086) | (17,167) | |
Effect of foreign currency translation on cash and cash equivalents | 4,973 | |||
Cash and cash equivalents-beginning | 120,126 | $ 137,293 | 120,126 | 137,293 |
Cash and cash equivalents-end | 317,470 | 32,040 | 120,126 | |
Supplementary cash flow information: | ||||
Interest received | 36 | 418 | 323 | |
Interest paid | (8,749) | |||
Huale Group Co. Limited [Member] | ||||
Loss from operations before taxation | (245,480) | (28,265) | ||
Adjustments for: | ||||
Depreciation of plant and equipment | 70,245 | |||
Depreciation of right-of-use assets | 50,651 | |||
Interest expense | 8,749 | |||
Operating cash flows before changes in working capital | (115,835) | (28,265) | ||
Cash flows from operating activities | ||||
Increase in accounts and other receivables | (38,807) | (36,852) | ||
Increase in inventory | (70,536) | |||
Increase in prepayments and other current assets | (10,665) | |||
Increase in payables and other current liabilities | 31,820 | (1,582) | ||
Net cash used in operating activities | (204,023) | (66,699) | ||
Cash flows from investing activities | ||||
Acquisition of subsidiary, net of cash acquired | ||||
Purchase of plant and equipment | (6,177) | |||
Net cash used in investing activities | (6,177) | |||
Cash flows from financing activities | ||||
Changes in related party balances, net | 413,492 | 18,898 | ||
Net cash provided by financing activities | 413,492 | 18,898 | ||
Net increase (decrease) of cash and cash equivalents | 203,292 | (47,801) | ||
Effect of foreign currency translation on cash and cash equivalents | (5,948) | 999 | ||
Cash and cash equivalents-beginning | 120,126 | 137,293 | $ 120,126 | 137,293 |
Cash and cash equivalents-end | 317,470 | 90,491 | $ 120,126 | |
Supplementary cash flow information: | ||||
Interest received | 36 | 168 | ||
Interest paid | $ (8,749) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) (Huale Group Co.Limited) - Huale Group Co. Limited [Member] - USD ($) | Common Stock [Member] | Accumulated Deficit [Member] | Foreign Currency Translation Reserve [Member] | Non-controlling Interest [Member] | Total [Member] |
Balance at Dec. 31, 2018 | $ 100,000 | $ (40,019) | $ (194) | $ 59,787 | |
Net loss | (28,265) | (28,265) | |||
Foreign currency translation adjustment | 515 | 515 | |||
Total comprehensive loss for the period | (28,265) | 515 | (27,750) | ||
Balance at Jun. 30, 2019 | 100,000 | (68,284) | 321 | 32,037 | |
Balance at Dec. 31, 2018 | 100,000 | (40,019) | (194) | 59,787 | |
Balance at Dec. 31, 2019 | 100,000 | (207,812) | (1,711) | (17,867) | (127,390) |
Net loss | (225,001) | (20,479) | (245,480) | ||
Foreign currency translation adjustment | 7,270 | 1,525 | 8,795 | ||
Total comprehensive loss for the period | (225,001) | 7,270 | (18,954) | (236,685) | |
Balance at Jun. 30, 2020 | 100,000 | (432,813) | 5,559 | (36,821) | (364,075) |
Balance at Dec. 31, 2019 | $ 100,000 | $ (207,812) | $ (1,711) | $ (17,867) | $ (127,390) |
Balance Sheets (Shenzhen Yeller
Balance Sheets (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | |||
Cash and cash equivalents | $ 120,126 | ||
Accounts receivable | 1,434 | ||
Other receivables | 134,112 | ||
Related party receivable | 80,270 | ||
Inventory | 138,211 | ||
Total current assets | 570,870 | ||
Non-current assets | |||
Right-of-use assets | 264,164 | ||
Property, plant and equipment, net | 367,484 | ||
Total Assets | 1,252,082 | ||
Current liabilities | |||
Accounts payable | 57,303 | ||
Deferred subsidy income | 107,488 | ||
Operating lease liabilities | 102,160 | ||
Related party payable | 195,214 | ||
Total current liabilities | 1,213,895 | ||
Non-current liabilities | |||
Deferred subsidy income | 170,190 | ||
Operating lease liabilities | 166,444 | ||
Total non-current liabilities | 336,634 | ||
Total Liabilities | 1,550,529 | ||
Stockholders' (Deficit) Equity | |||
Common Stock | 3,625 | ||
Accumulated deficit | (482,847) | ||
Total Liabilities and (Deficit) Equity | 1,252,082 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||
Current assets | |||
Cash and cash equivalents | $ 294,838 | 82,950 | $ 3,182 |
Accounts receivable | 1,415 | 1,434 | 12,014 |
Other receivables | 128,773 | 134,112 | 118,686 |
Related party receivable | 478,085 | 166,393 | |
Advances and prepayments to suppliers | 105,939 | 96,717 | 3,694 |
Subsidies receivable | 471,901 | ||
Inventory | 206,405 | 138,211 | |
Total current assets | 1,215,455 | 619,817 | 609,477 |
Non-current assets | |||
Right-of-use assets | 209,977 | 264,164 | |
Property, plant and equipment, net | 297,777 | 367,116 | 511,691 |
Total non-current assets | 507,754 | 631,280 | 511,691 |
Total Assets | 1,723,209 | 1,251,097 | 1,121,168 |
Current liabilities | |||
Accounts payable | 84,860 | 57,303 | 12,491 |
Taxes payable | 21 | 436 | (23) |
Other payable | 338,898 | 275,167 | 204,196 |
Accrued liabilities and expenses | 3,948 | 5,137 | 5,124 |
Customer advances and deposits | 474,272 | 456,112 | 40,771 |
Deferred subsidy income | 105,945 | 107,488 | 390,226 |
Operating lease liabilities | 102,902 | 102,159 | |
Related party payable | 15,367 | 460,699 | |
Total current liabilities | 1,126,213 | 1,003,802 | 1,113,484 |
Non-current liabilities | |||
Deferred subsidy income | 114,774 | 170,190 | |
Operating lease liabilities | 112,045 | 166,444 | |
Total non-current liabilities | 226,819 | 336,634 | |
Total Liabilities | 1,353,032 | 1,340,436 | 1,113,484 |
Commitments and Contingencies | |||
Stockholders' (Deficit) Equity | |||
Common Stock | 853,952 | 299,668 | 293,842 |
Accumulated deficit | (501,051) | (398,657) | (294,993) |
Accumulated other comprehensive loss | 17,276 | 9,650 | 8,835 |
Total Equity (Deficit) | 370,177 | (89,339) | 7,684 |
Total Liabilities and (Deficit) Equity | $ 1,723,209 | $ 1,251,097 | $ 1,121,168 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 136,394 | $ 505,571 | ||
Cost of revenues | (115,220) | (446,542) | ||
Gross profit | 21,174 | 59,029 | ||
Operating expenses: | ||||
Selling and marketing expenses | (279) | (6,933) | ||
General and administrative expenses | (353,637) | (464,629) | ||
Total operating expenses | 353,916 | 471,562 | ||
Operating loss | (332,742) | (412,533) | ||
Other income (expenses): | ||||
Interest expense | (8,749) | (5,620) | ||
Other income | 54,632 | 133,175 | ||
Total other income and (expenses) | 45,919 | 127,878 | ||
Loss before taxes from operations | (286,823) | (284,655) | ||
Provision for income taxes | ||||
Net loss | (286,823) | (284,655) | ||
Other comprehensive income: | ||||
Foreign currency translation income (loss) | 8,795 | (1,875) | ||
Total comprehensive loss | (278,028) | (286,530) | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Revenues | 136,394 | $ 167,102 | 752,466 | $ 61,686 |
Cost of revenues | (115,220) | (92,751) | (539,293) | (30,412) |
Gross profit | 21,174 | 74,351 | 213,173 | 31,274 |
Operating expenses: | ||||
Selling and marketing expenses | (279) | (3,661) | (10,594) | (642) |
General and administrative expenses | (172,585) | (194,242) | (409,300) | (346,459) |
Total operating expenses | (172,864) | (197,903) | (419,894) | (347,101) |
Operating loss | (151,690) | (123,552) | (206,721) | (315,827) |
Other income (expenses): | ||||
Interest income | 23 | 133 | 22 | |
Interest expense | (5,336) | (9,653) | (5,620) | (6,999) |
Other income | 54,632 | 55,162 | 108,544 | 84,983 |
Total other income and (expenses) | 49,296 | 45,532 | 103,057 | 78,006 |
Loss before taxes from operations | (102,394) | (78,020) | (103,664) | (237,821) |
Provision for income taxes | ||||
Net loss | (102,394) | (78,020) | (103,664) | (237,821) |
Other comprehensive income: | ||||
Foreign currency translation income (loss) | 7,626 | 2,609 | 815 | 7,178 |
Total comprehensive loss | $ (94,768) | $ (75,411) | $ (102,849) | $ (230,643) |
Statements of Stockholders' (De
Statements of Stockholders' (Deficit) Equity (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - Shenzhen Yeller Audio & Video Technology Co., Limited [Member] - USD ($) | Common Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total [Member] |
Balance at Dec. 31, 2017 | $ 14,653 | $ (57,172) | $ 1,657 | $ (40,862) |
Capital contribution | 279,189 | 279,189 | ||
Net loss | (237,821) | (237,821) | ||
Foreign currency translation adjustment | 7,178 | 7,178 | ||
Balance at Dec. 31, 2018 | 293,842 | (294,993) | 8,835 | 7,684 |
Capital contribution | 5,826 | 5,826 | ||
Net loss | (78,020) | (78,020) | ||
Foreign currency translation adjustment | 2,609 | 2,609 | ||
Balance at Jun. 30, 2019 | 299,668 | (373,013) | 11,443 | (61,902) |
Balance at Dec. 31, 2018 | 293,842 | (294,993) | 8,835 | 7,684 |
Capital contribution | 5,826 | 5,826 | ||
Net loss | (103,664) | (103,664) | ||
Foreign currency translation adjustment | 815 | 815 | ||
Balance at Dec. 31, 2019 | 299,668 | (398,657) | 9,650 | (89,339) |
Capital contribution | 554,284 | 554,284 | ||
Net loss | (102,394) | (102,394) | ||
Foreign currency translation adjustment | 7,626 | 7,626 | ||
Balance at Jun. 30, 2020 | 853,952 | (501,051) | 17,276 | 370,177 |
Balance at Dec. 31, 2019 | $ 299,668 | $ (398,657) | $ 9,650 | $ (89,339) |
Statements of Cash Flows (Shenz
Statements of Cash Flows (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||||
Net loss | $ (286,823) | $ (967,491) | $ (284,655) | ||
Decrease (Increase) in accounts and other receivables | 38,807 | (33,084) | 137,063 | ||
Increase in inventory | 70,536 | (48,657) | 94,425 | ||
Decrease in prepayments and other current assets | 10,665 | 89,210 | 84,717 | ||
Increase in payables and other current liabilities | 31,819 | (60,507) | 455,217 | ||
Net cash (used in) /provided by operating activities | (245,367) | (334,692) | (24,634) | ||
Cash flows from investing activities | |||||
Purchase of plant and equipment | (6,177) | (11,173) | (4,200) | ||
Net cash used in investing activities | (6,177) | (11,173) | 23,564 | ||
Cash flows from financing activities | |||||
Changes in related party balances, net | 443,915 | 174,434 | (16,097) | ||
Net cash provided by/ (used in) financing activities | 443,915 | 257,779 | (16,097) | ||
Net increase of cash and cash equivalents | 192,371 | (88,086) | (17,167) | ||
Effect of foreign currency translation on cash and cash equivalents | 4,973 | ||||
Cash and cash equivalents-beginning | 120,126 | $ 137,293 | 120,126 | 137,293 | |
Cash and cash equivalents-end | 317,470 | 32,040 | 120,126 | $ 137,293 | |
Supplementary cash flow information: | |||||
Interest received | 36 | 418 | 323 | ||
Interest paid | (8,749) | ||||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||||
Cash flows from operating activities | |||||
Net loss | (102,394) | (78,020) | (103,664) | (237,821) | |
Depreciation | 70,245 | 71,836 | 143,571 | 111,089 | |
Decrease (Increase) in accounts and other receivables | 3,430 | (141,050) | (4,846) | (73,945) | |
Increase in inventory | (70,536) | (45,604) | (138,211) | ||
Decrease in prepayments and other current assets | 39,987 | 110,923 | 378,878 | (494,418) | |
Increase in payables and other current liabilities | 16,523 | 580,794 | 453,675 | 629,474 | |
Net cash (used in) /provided by operating activities | (42,745) | 498,879 | 729,403 | (65,621) | |
Cash flows from investing activities | |||||
Purchase of plant and equipment | (6,177) | (2,131) | (3,832) | (453,661) | |
Net cash used in investing activities | (6,177) | (2,131) | (3,832) | (453,661) | |
Cash flows from financing activities | |||||
Proceeds from injection of capital by owners | 554,284 | 5,838 | 5,797 | 287,544 | |
Changes in related party balances, net | (291,557) | (476,862) | (650,780) | 232,256 | |
Net cash provided by/ (used in) financing activities | 262,727 | (471,024) | (644,983) | 519,800 | |
Net increase of cash and cash equivalents | 213,805 | 25,724 | 80,588 | 518 | |
Effect of foreign currency translation on cash and cash equivalents | (1,917) | (1,141) | (820) | (66) | |
Cash and cash equivalents-beginning | 82,950 | 3,182 | $ 82,950 | 3,182 | 2,730 |
Cash and cash equivalents-end | 294,838 | 27,765 | 82,950 | 3,182 | |
Supplementary cash flow information: | |||||
Interest received | 23 | 133 | 22 | ||
Interest paid | (5,336) | (9,653) | (5,620) | (6,999) | |
Income taxes paid |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Principal Activities | 1. Organization and Principal Activities Huale Acoustics Limited (“the Company”) was originally incorporated in Nevada under the name “Illumitry Corp.” on October 17, 2014. It currently maintains its principal executive offices at Floor 13, Building B1, Wisdom Plaza, Qiaoxiang Road, Nanshan District, Shenzhen, Guangdong Province, China 518000. The Company was formed to commence operations in the field of embroidery on fabric in Armenia. The Company filed a registration statement on Form S-1 with the SEC on March 18, 2015, which was declared effective on October 6, 2015. In October 2017, subsequent to a change of control, the Company’s name was changed to Huale Acoustics Corporation and management of the Company abandoned its business plan and determined to seek a possible business combination. Immediately prior to the Share Exchange, the business purpose of the Company was to seek the acquisition of, or merger with, an existing company. As a result, the Company became a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with nominal assets and no business operations, and it sought to identify, evaluate and investigate various companies with the intent that, if such investigation warranted, a reverse merger transaction could be negotiated and completed pursuant to which the Company would acquire a target company with an operating business with the intent of continuing the acquired company’s business as a publicly held entity. On December 21, 2018, our Board of Directors unanimously adopted resolutions approving the redomicile of the Company from Nevada to the Cayman Islands. The Company changed its domicile, effective May 7, 2019, by merging into its wholly owned Cayman Islands subsidiary, Huale Acoustics Limited (the “Redomicile Merger”). As a result of the Redomicile Merger, the Company’s name was changed to Huale Acoustics Limited. On April 28, 2020, the Company completed a Share Exchange with the shareholders of Huale Group Co., Limited. Under the Share Exchange Agreement, Huale Group Co. Limited’s shareholders exchanged all of the shares that they held in Huale Group Co. Limited for 32,625,000 ordinary shares of the Company. Consequently, Huale Group Co. Limited’s shareholders own approximately 90% of the total outstanding ordinary shares of the Company and the former shareholders of the Company own approximately 10%. From and after the Closing Date of the Share Exchange described above, the Company’s operations will now consist of the operations of Huale Group Co., Limited and its subsidiaries. As a result, Huale Group Co. Limited is now a wholly owned subsidiary of the Company. Huale Group Co., Limited (“HGL”) was incorporated under the laws of the Republic of Seychelles on September 28, 2016. HGL did not have operations that generated revenues and positive cash flows; however, the Company’s management has been reviewing investment opportunities. Huale Holding Co., Limited (“HHC”) was incorporated under the laws of the Republic of Seychelles on May 15, 2017. HHC is an investment holding company. It is a wholly owned subsidiary of the Company. Its sole director is Huang Yusheng. Huale (HK) Investment Co., Limited (“HHK”) was incorporated on September 16, 2016 in Hong Kong with limited liability. Its original shareholder was Huang Yusheng. On May 29, 2018, HHC and Huang Yusheng entered into an agreement whereby Huang Yusheng transferred his entire equity in the company to HHC. Therefore, HHK became a wholly owned subsidiary of HHC. On March 27, 2017, Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited. (“QCM”) was incorporated as a wholly owned foreign entity in the PRC. It is a wholly owned subsidiary of HHK. On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72) Shenzhen Yeller Video & Technology Co., Ltd. (“Shenzhen Yeller”) was incorporated under the laws of the PRC on May 5, 2017. Its primary businesses are gathering and selling high-quality audio and video products. Located in Futian District, Shenzhen, Shenzhen Yeller will also establish branches in first- and second-tier cities. As of June 30, 2021, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media | 1. Organization and Principal Activities Huale Acoustics Limited (“the Company”) was originally incorporated in Nevada under the name “Illumitry Corp.” on October 17, 2014. It currently maintains its principal executive offices at Floor 13, Building B1, Wisdom Plaza, Qiaoxiang Road, Nanshan District, Shenzhen, Guangdong Province, China 518000. The Company was formed to commence operations in the field of embroidery on fabric in Armenia. The Company filed a registration statement on Form S-1 with the SEC on March 18, 2015, which was declared effective on October 6, 2015. In October 2017, subsequent to a change of control, the Company’s name was changed to Huale Acoustics Corporation and management of the Company abandoned its business plan and determined to seek a possible business combination. Immediately prior to the Share Exchange, the business purpose of the Company was to seek the acquisition of, or merger with, an existing company. As a result, the Company became a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with nominal assets and no business operations, and it sought to identify, evaluate and investigate various companies with the intent that, if such investigation warranted, a reverse merger transaction could be negotiated and completed pursuant to which the Company would acquire a target company with an operating business with the intent of continuing the acquired company’s business as a publicly held entity. On December 21, 2018, our Board of Directors unanimously adopted resolutions approving the redomicile of the Company from Nevada to the Cayman Islands. The Company changed its domicile, effective May 7, 2019, by merging into its wholly owned Cayman Islands subsidiary, Huale Acoustics Limited (the “Redomicile Merger”). As a result of the Redomicile Merger, the Company’s name was changed to Huale Acoustics Limited. On April 28, 2020, the Company completed a Share Exchange with the shareholders of Huale Group Co., Limited. Under the Share Exchange Agreement, Huale Group Co. Limited’s shareholders exchanged all of the shares that they held in Huale Group Co. Limited for 32,625,000 ordinary shares of the Company. Consequently, Huale Group Co. Limited’s shareholders own approximately 90% of the total outstanding ordinary shares of the Company and the former shareholders of the Company own approximately 10%. From and after the Closing Date of the Share Exchange described above, the Company’s operations will now consist of the operations of Huale Group Co., Limited and its subsidiaries. As a result, Huale Group Co. Limited is now a wholly owned subsidiary of the Company. Huale Group Co., Limited (“HGL”) was incorporated under the laws of the Republic of Seychelles on September 28, 2016. HGL did not have operations that generated revenues and positive cash flows; however, the Company’s management has been reviewing investment opportunities. Huale Holding Co., Limited (“HHC”) was incorporated under the laws of the Republic of Seychelles on May 15, 2017. HHC is an investment holding company. It is a wholly owned subsidiary of the Company. Its sole director is Huang Yusheng. Huale (HK) Investment Co., Limited (“HHK”) was incorporated on September 16, 2016 in Hong Kong with limited liability. Its original shareholder was Huang Yusheng. On May 29, 2018, HHC and Huang Yusheng entered into an agreement whereby Huang Yusheng transferred his entire equity in the company to HHC. Therefore, HHK became a wholly owned subsidiary of HHC. On March 27, 2017, Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited. (“QCM”) was incorporated as a wholly owned foreign entity in the PRC. It is a wholly owned subsidiary of HHK. On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72) Shenzhen Yeller Video & Technology Co., Ltd. (“Shenzhen Yeller”) was incorporated under the laws of the PRC on May 5, 2017. Its primary businesses are gathering and selling high-quality audio and video products. Located in Futian District, Shenzhen, Shenzhen Yeller also intends to establish branches in first- and second-tier cities, subject to sufficient capital being available. As of December 31, 2020, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of 185,750 during the six months ended June 30, 2021. As of June 30, 2021, the Company had net current liability of $1,517,991 and total deficit of $1,420,886. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted ASU 2016-02 on January 1, 2019 and recognize operating lease liabilities with corresponding right of use (“ROU”) assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases with a term longer than 12 months. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes several changes meant to add, modify or remove specific disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The modifications are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption, permitted. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $967,491 during the year ended December 31, 2020. As of December 31, 2020, the Company had net current liability of $1,217,646 and total deficit of $1,216,410. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company recorded $235,202 write-off on leasehold improvement for the year ended December 31, 2020. The Company did not record any impairment losses on long-lived assets during the year ended December 31, 2019. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Company first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Impairment loss of $49,564 was recognized during the year ended December 31, 2020. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Impairment loss of $161,274 was recognized during the year ended December 31, 2020. Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12312020 12302019 Year end RMB: US$ exchange rate 6.52765 6.96676 Annual average RMB: US$ exchange rate 6.99410 6.89955 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Research and development All research and development costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. |
Trade Receivables
Trade Receivables | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Trade Receivables | 3. Trade Receivables The Company does not provide any credit terms to its customers. | 3. Trade Receivables The Company does not provide any credit terms to its customers. |
Prepaid Expenses and Advance Pa
Prepaid Expenses and Advance Payment to Suppliers | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Prepaid Expenses And Advance Payment To Suppliers | ||
Prepaid Expenses and Advance Payment to Suppliers | 4. Prepaid Expenses and Advance Payment to Suppliers June 30, 2021 December 31, $ $ Prepaid expenses 42,138 76,597 Advance payments to Suppliers 196,101 122,616 238,239 199,213 | 4. Prepaid Expenses and Advance Payment to Suppliers December 31, December 31, $ $ Prepaid expenses 76,597 - Advance payments to Suppliers 122,616 96,717 199,213 96,717 |
Other Receivables
Other Receivables | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Other Receivables | 5. Other Receivables June 30, December 31, $ $ Value Added Tax Receivables 17,797 29,477 Deposit 65,779 65,046 Others 12,394 1,730 95,970 96,253 | 5. Other Receivables December 31, December 31, $ $ Security deposit - 2,871 Value Added Tax Receivables 29,477 60,946 Deposit 65,046 56,251 Others 1,730 14,044 96,253 134,112 |
Plant and Equipment
Plant and Equipment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Plant and Equipment | 6. Plant and Equipment Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2020 (Audited) 776 1,256 1,219 - 3,251 Additions during the year - - - - - Disposals during the year - - - - - Effects of currency translation 9 14 14 - 37 At June 30, 2021 (Unaudited) 785 1,270 1,233 - 3,288 Accumulated depreciation At December 31,2020 (Audited) 227 754 1,034 - 2,015 Depreciation during the year - 158 114 272 Disposals during the year - - - - - Effects of currency translation 9 9 19 37 At June 30, 2021 (Unaudited) 236 921 1,167 - 2,324 Net book value At December 31, 2020 (Audited) 549 502 185 - 1,236 At June 30, 2021 (Unaudited) 549 349 66 - 964 | 6. Plant and Equipment Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2019 (Audited) 368 651 1,142 612,507 614,668 Additions during the year 382 560 - 10,231 11,173 Disposals during the year - - - (622,738 ) (622,738 ) Effects of currency translation 26 45 77 - 148 At December 31, 2020 (Audited) 776 1,256 1,219 - 3,251 Accumulated depreciation At December 31,2019 (Audited) - 374 588 246,222 247,184 Depreciation during the year 212 331 379 141,297 142,219 Disposals during the year - - - (387,519 ) (387,519 ) Effects of currency translation 15 49 67 - 131 At December 31, 2020 (Audited) 227 754 1,034 - 2,015 Net book value At December 31, 2019 (Audited) 368 277 554 366,285 367,484 At December 31, 2020 (Audited) 549 502 185 - 1,236 |
Right of Use Assets
Right of Use Assets | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Right Of Use Assets | ||
Right of Use Assets | 7. Right of Use Assets $ Cost At December 31,2020 (Audited) - Additions during the year 302,745 Write-off during the year - Effects of currency translation - At June 30, 2021 (Unaudited) 302,745 Accumulated depreciation At December 31,2020 (Audited) - Depreciation during the year 25,035 Write-off during the year - Effects of currency translation 194 At June 30, 2021 (Unaudited) 25,229 Net book value At December 31, 2020 (Audited) - At June 30, 2021 (Unaudited) 277,516 Right of use asset consisted of a three-year lease agreement with Shenzhen Yeller Investment in Development Co., Ltd. commencing on April 1, 2021 and expiring on March 31, 2024. | 7. Right of Use Assets $ Cost At December 31,2019 (Audited) 366,421 Additions during the year - Write-off during the year (366,421 ) Effects of currency translation - At December 31, 2020 (Audited) - Accumulated depreciation At December 31,2019 (Audited) 102,257 Depreciation during the year 102,890 Write-off during the year (205,147 ) Effects of currency translation - At December 31, 2020 (Audited) - Net book value At December 31, 2019 (Audited) 264,164 At December 31, 2020 (Audited) - Right of use asset solely consisted of a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022. The Company ceased its operation at CEEC exhibition mall in March 2021 due to the change in mall operations. Consequently, the ROU assets and leasehold improvements in connection with the lease at CEEC exhibition mall were written off as at December 31, 2020. The Company is still pending for resolution with the CEEC mall operator on the outstanding lease obligations and deferred subsidy income received under the terms of the lease agreement. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. Goodwill On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). Impairment loss of $49,564 was recognized during the year ended December 31, 2020. |
Other Payables and Accruals
Other Payables and Accruals | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Other Payables and Accruals | 8. Other payables and Accruals June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Accrued payroll and welfare payable 1,790 12,882 VAT and other taxes payable 208 6,380 Others (a) 575,226 501,678 577,224 520,940 (a) Others primarily consist of rental payable. | 9. Other payables and Accruals December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Accrued payroll and welfare payable 12,882 10,820 VAT and other taxes payable 6,380 557 Others (a) 501,678 284,241 520,940 295,618 (a) Others primarily consist of rental payable. |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | 9. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At June 30, 2021 and December 31, 2020, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2021 December 31, 2020 Relationship Huang Xiansheng 20,140 19,915 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd - 44,581 Company owned by President of the Company 20,140 64,496 At June 30, 2021 and December 31, 2020, the Company owed funds to the following related parties: June 30, 2021 December 31, 2020 Relationship Shenzhen Yeller Investment & Development Co., Ltd 9,672 - Company owned by President of the Company Huang Yusheng 544,142 374,553 President of the Company 553,814 374,553 These advances were unsecured, non-interest bearing and due on demand. (b) Transactions June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd 4,458 9,975 Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd 28,466 70,703 Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd 26,750 7,592 Sales of finished goods to Shenzhen Yeller Investment & Development Co., Ltd - 7,237 | 10. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. December, 2020 December 31, 2019 Relationship Huang Xiansheng.5in 19,915 25,837 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd 44,581 54,433 Company owned by President of the Company 64,496 80,270 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: December, 2020 December 31, 2019 Relationship Huang Zhicheng - 57,423 Former shareholder of the Company Huang Yusheng 374,553 137,791 President of the Company 374,553 195,214 These advances were unsecured, non-interest bearing and due on demand. (b) Transactions December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Purchases of goods from Shenzhen Yeller 9,975 232,238 Installation service charged by Shenzhen Yeller 70,703 45,351 Rental fee charged to Shenzhen Yeller 7,592 285,561 Sales of finished goods to Shenzhen Yeller 7,237 - |
Income Taxes
Income Taxes | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | 10. Income Taxes Cayman Islands The Company is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the year ended December 31, 2020. eychelles The Company’s subsidiaries formed in the Republic of Seychelles are not subject to tax on its income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no withholding tax is imposed. Hong Kong The Company’s subsidiary formed in Hong Kong is subject to a profits tax rate of 16.5% for income generated in the special administrative region. PRC The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company’s subsidiaries incorporated in the PRC have unused net operating losses (“NOLs”) amounting to $1,065,588 available for carry forward to future years for PRC income tax reporting purposes as at June 30, 2021 (2020: $607,866). Income tax expense (benefits) June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) $ $ Loss before tax (185,750 ) (286,823 ) Tax credit calculated at statutory tax rate (46,438 ) (71,706 ) Effect of different tax rates in other countries - 112 Others 46,438 71,594 - - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. | 11. Income Taxes Cayman Islands The Company is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the year ended December 31, 2020. Seychelles The Company’s subsidiaries formed in the Republic of Seychelles are not subject to tax on its income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no withholding tax is imposed. Hong Kong The Company’s subsidiary formed in Hong Kong is subject to a profits tax rate of 16.5% for income generated in the special administrative region. PRC The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company’s subsidiaries incorporated in the PRC have unused net operating losses (“NOLs”) amounting to $418,712 available for carry forward to future years for PRC income tax reporting purposes as at December 31, 2020 (2019: $322,868). Income tax expense (benefits) December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Loss before tax (967,491 ) (284,655 ) Tax credit calculated at statutory tax rate (241,873 ) (71,164 ) Effect of different tax rates in other countries 36 118 Others 241,837 71,046 - - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. |
Deferred Subsidy Income
Deferred Subsidy Income | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Deferred Subsidy Income | ||
Deferred subsidy income | 11. Deferred subsidy income Based on the lease agreement entered into with CEEC, the Company was entitled to a subsidy of RMB 3,245,000 ($471,901) for renovation if the Company fulfills its contractual obligations. The full subsidy amount has been recorded in 2018 as deferred subsidy income when the renovation was completed in March 2018 and the Company commenced operations thereafter. Deferred subsidy was amortized on a straight line basis over 52 months, which represents the remaining lease term of the CEEC contract. As of June 30, 2021, the deferred subsidy income amounted to $154,683. The Company is still pending for resolution with the CEEC mall operator on the outstanding lease obligations and deferred subsidy income received under the terms of the lease agreement. | 12. Deferred subsidy income Based on the lease agreement entered into with CEEC, the Company was entitled to a subsidy of RMB 3,245,000 ($471,901) for renovation if the Company fulfills its contractual obligations. The full subsidy amount has been recorded in 2018 as deferred subsidy income when the renovation was completed in March 2018 and the Company commenced operations thereafter. Deferred subsidy was amortized on a straight line basis over 52 months, which represents the remaining lease term of the CEEC contract. As of December 31, 2020, the deferred subsidy income amounted to $181,639. |
Leases
Leases | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Leases | 12. Leases Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022 and a three-year lease agreement with Shenzhen Yeller Investment & Development Co., Ltd commencing on April 1, 2021 and expiring on March 31, 2024. As of June 30, 2021, the Company has $277,516 of right-of-use assets, $248,942 in current operating lease liabilities and $181,375 in non-current operating lease liabilities as of June 30, 2021. Significant assumptions and judgments made as part of the adoption of this lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2021 As of December 31, 2020 (Audited) (Audited) $ $ Within 1 year 259,195 183,990 After 1 year but within 5 years 188,729 - Total lease payments 447,924 183,990 Less: imputed interest (17,607 ) (6,349 ) Total lease obligations 430,317 177,641 Less: current obligations 248,942 (177,641 ) Long-term lease obligations 181,375 - | 13. Leases Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022. As of December 31, 2020, the Company has $Nil of right-of-use assets, $177,641 in current operating lease liabilities and $Nil in non-current operating lease liabilities as of December 31, 2020. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of December 31, 2020 As of December 31, 2019 (Audited) (Audited) $ $ Within 1 year 183,990 113,291 After 1 year but within 5 years - 171,630 Total lease payments 183,990 284,921 Less: imputed interest (6,349 ) (16,318 ) Total lease obligations 177,641 268,603 Less: current obligations (177,641 ) (102,159 ) Long-term lease obligations - 166,444 |
Reserves
Reserves | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Reserves | ||
Reserves | 13. Reserves Statutory reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. During the six months ended June 30, 2021 and the year ended December 31, 2020, the Company did not accrue any statutory reserve. Foreign currency translation reserve The foreign currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. | 14. Reserves Statutory reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. During the year ended December 31, 2020 and 2019, the Company did not accrue any statutory reserve. Foreign currency translation reserve The foreign currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. |
Risks
Risks | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | ||
Risks | 14. Risks A. Credit risk The Company’s deposits are with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk from credit extended to customers. B. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. C. Interest risk The Company does not have any liability that is subject to interest rate risk. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. | 15. Risks A. Credit risk The Company’s deposits are with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk from credit extended to customers. B. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. C. Interest risk The Company does not have any liability that is subject to interest rate risk. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
Subsequent Events | 15. Subsequent Events The management cannot foresee whether any reoccurrence of COVID-19 will be forthcoming in the future. If any reoccurrence of COVID-19 is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee. Any of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. The Company ceased its operation at CEEC exhibition mall in March 2021 due to the change in mall operations. Arising from the cessation, the Company entered into a lease agreement with Shenzhen Yeller Investment in Development Co., Ltd. to lease a new premise at F26 Culture and Sport Buidling, Futian Sport Park, No. 3030, Fuqiang Road, Futian District, Shenzhen, Guangdong, China. Consequently, the ROU assets and leasehold improvements in connection with the lease at CEEC exhibition mall were written off as at December 31, 2020. The Company is still pending for resolution with the CEEC mall operator on the outstanding lease obligations and deferred subsidy income received under the terms of the lease agreement. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. | 16. Subsequent Events The management cannot foresee whether any reoccurrence of COVID-19 will be forthcoming in the future. If any reoccurrence of COVID-19 is not effectively and timely controlled, the business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that the management cannot foresee. Any of these factors and other factors beyond management control could have an adverse effect on the overall business environment, cause uncertainties in the regions where the Company conducts its business, which may adversely impact the business, financial condition and results of operations. The Company ceased its operation at CEEC exhibition mall in March 2021 due to the change in mall operations. Arising from the cessation, the Company entered into a lease agreement with Shenzhen Yeller Investment Development Co., Ltd. to lease a new premise at F26 Culture and Sport Buidling, Futian Sport Park, No. 3030, Fuqiang Road, Futian District, Shenzhen, Guangdong, China. Consequently, the ROU assets and leasehold improvements in connection with the lease at CEEC exhibition mall were written off as at December 31, 2020. The Company is still pending for resolution with the CEEC mall operator on the outstanding lease obligations and deferred subsidy income received under the terms of the lease agreement. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Organization and Principal Activities | 1. Organization and Principal Activities Huale Acoustics Limited (“the Company”) was originally incorporated in Nevada under the name “Illumitry Corp.” on October 17, 2014. It currently maintains its principal executive offices at Floor 13, Building B1, Wisdom Plaza, Qiaoxiang Road, Nanshan District, Shenzhen, Guangdong Province, China 518000. The Company was formed to commence operations in the field of embroidery on fabric in Armenia. The Company filed a registration statement on Form S-1 with the SEC on March 18, 2015, which was declared effective on October 6, 2015. In October 2017, subsequent to a change of control, the Company’s name was changed to Huale Acoustics Corporation and management of the Company abandoned its business plan and determined to seek a possible business combination. Immediately prior to the Share Exchange, the business purpose of the Company was to seek the acquisition of, or merger with, an existing company. As a result, the Company became a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with nominal assets and no business operations, and it sought to identify, evaluate and investigate various companies with the intent that, if such investigation warranted, a reverse merger transaction could be negotiated and completed pursuant to which the Company would acquire a target company with an operating business with the intent of continuing the acquired company’s business as a publicly held entity. On December 21, 2018, our Board of Directors unanimously adopted resolutions approving the redomicile of the Company from Nevada to the Cayman Islands. The Company changed its domicile, effective May 7, 2019, by merging into its wholly owned Cayman Islands subsidiary, Huale Acoustics Limited (the “Redomicile Merger”). As a result of the Redomicile Merger, the Company’s name was changed to Huale Acoustics Limited. On April 28, 2020, the Company completed a Share Exchange with the shareholders of Huale Group Co., Limited. Under the Share Exchange Agreement, Huale Group Co. Limited’s shareholders exchanged all of the shares that they held in Huale Group Co. Limited for 32,625,000 ordinary shares of the Company. Consequently, Huale Group Co. Limited’s shareholders own approximately 90% of the total outstanding ordinary shares of the Company and the former shareholders of the Company own approximately 10%. From and after the Closing Date of the Share Exchange described above, the Company’s operations will now consist of the operations of Huale Group Co., Limited and its subsidiaries. As a result, Huale Group Co. Limited is now a wholly owned subsidiary of the Company. Huale Group Co., Limited (“HGL”) was incorporated under the laws of the Republic of Seychelles on September 28, 2016. HGL did not have operations that generated revenues and positive cash flows; however, the Company’s management has been reviewing investment opportunities. Huale Holding Co., Limited (“HHC”) was incorporated under the laws of the Republic of Seychelles on May 15, 2017. HHC is an investment holding company. It is a wholly owned subsidiary of the Company. Its sole director is Huang Yusheng. Huale (HK) Investment Co., Limited (“HHK”) was incorporated on September 16, 2016 in Hong Kong with limited liability. Its original shareholder was Huang Yusheng. On May 29, 2018, HHC and Huang Yusheng entered into an agreement whereby Huang Yusheng transferred his entire equity in the company to HHC. Therefore, HHK became a wholly owned subsidiary of HHC. On March 27, 2017, Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited. (“QCM”) was incorporated as a wholly owned foreign entity in the PRC. It is a wholly owned subsidiary of HHK. On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72) Shenzhen Yeller Video & Technology Co., Ltd. (“Shenzhen Yeller”) was incorporated under the laws of the PRC on May 5, 2017. Its primary businesses are gathering and selling high-quality audio and video products. Located in Futian District, Shenzhen, Shenzhen Yeller will also establish branches in first- and second-tier cities. As of June 30, 2021, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media | 1. Organization and Principal Activities Huale Acoustics Limited (“the Company”) was originally incorporated in Nevada under the name “Illumitry Corp.” on October 17, 2014. It currently maintains its principal executive offices at Floor 13, Building B1, Wisdom Plaza, Qiaoxiang Road, Nanshan District, Shenzhen, Guangdong Province, China 518000. The Company was formed to commence operations in the field of embroidery on fabric in Armenia. The Company filed a registration statement on Form S-1 with the SEC on March 18, 2015, which was declared effective on October 6, 2015. In October 2017, subsequent to a change of control, the Company’s name was changed to Huale Acoustics Corporation and management of the Company abandoned its business plan and determined to seek a possible business combination. Immediately prior to the Share Exchange, the business purpose of the Company was to seek the acquisition of, or merger with, an existing company. As a result, the Company became a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with nominal assets and no business operations, and it sought to identify, evaluate and investigate various companies with the intent that, if such investigation warranted, a reverse merger transaction could be negotiated and completed pursuant to which the Company would acquire a target company with an operating business with the intent of continuing the acquired company’s business as a publicly held entity. On December 21, 2018, our Board of Directors unanimously adopted resolutions approving the redomicile of the Company from Nevada to the Cayman Islands. The Company changed its domicile, effective May 7, 2019, by merging into its wholly owned Cayman Islands subsidiary, Huale Acoustics Limited (the “Redomicile Merger”). As a result of the Redomicile Merger, the Company’s name was changed to Huale Acoustics Limited. On April 28, 2020, the Company completed a Share Exchange with the shareholders of Huale Group Co., Limited. Under the Share Exchange Agreement, Huale Group Co. Limited’s shareholders exchanged all of the shares that they held in Huale Group Co. Limited for 32,625,000 ordinary shares of the Company. Consequently, Huale Group Co. Limited’s shareholders own approximately 90% of the total outstanding ordinary shares of the Company and the former shareholders of the Company own approximately 10%. From and after the Closing Date of the Share Exchange described above, the Company’s operations will now consist of the operations of Huale Group Co., Limited and its subsidiaries. As a result, Huale Group Co. Limited is now a wholly owned subsidiary of the Company. Huale Group Co., Limited (“HGL”) was incorporated under the laws of the Republic of Seychelles on September 28, 2016. HGL did not have operations that generated revenues and positive cash flows; however, the Company’s management has been reviewing investment opportunities. Huale Holding Co., Limited (“HHC”) was incorporated under the laws of the Republic of Seychelles on May 15, 2017. HHC is an investment holding company. It is a wholly owned subsidiary of the Company. Its sole director is Huang Yusheng. Huale (HK) Investment Co., Limited (“HHK”) was incorporated on September 16, 2016 in Hong Kong with limited liability. Its original shareholder was Huang Yusheng. On May 29, 2018, HHC and Huang Yusheng entered into an agreement whereby Huang Yusheng transferred his entire equity in the company to HHC. Therefore, HHK became a wholly owned subsidiary of HHC. On March 27, 2017, Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited. (“QCM”) was incorporated as a wholly owned foreign entity in the PRC. It is a wholly owned subsidiary of HHK. On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72) Shenzhen Yeller Video & Technology Co., Ltd. (“Shenzhen Yeller”) was incorporated under the laws of the PRC on May 5, 2017. Its primary businesses are gathering and selling high-quality audio and video products. Located in Futian District, Shenzhen, Shenzhen Yeller also intends to establish branches in first- and second-tier cities, subject to sufficient capital being available. As of December 31, 2020, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media | |
Huale Group Co. Limited [Member] | |||
Organization and Principal Activities | 1. Organization and Principal Activities Huale Group Co., Limited (“the Company”) was incorporated under the laws of the Republic of Seychelles on September 28 th Huale Holding Co., Limited (HHC) was incorporated under the laws of the Republic of Seychelles on May 15 th Huale (HK) Investment Co., Limited (HHK) was incorporated on September 16 th th On March 27 th On August 2, 2019, OCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders:1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). Shenzhen Yeller Video & Technology Co., Ltd. (Shenzhen Yeller) was incorporated under the laws of PRC on May 5th, 2017. Its primary businesses are gathering and selling high-quality audio and video products. Located in Futian District, Shenzhen, Shenzhen Yeller will also establish branches in first- and second-tier cities. As of December 31, 2019, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Holding Co., Limited (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited (“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited (“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of 185,750 during the six months ended June 30, 2021. As of June 30, 2021, the Company had net current liability of $1,517,991 and total deficit of $1,420,886. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted ASU 2016-02 on January 1, 2019 and recognize operating lease liabilities with corresponding right of use (“ROU”) assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases with a term longer than 12 months. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes several changes meant to add, modify or remove specific disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The modifications are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption, permitted. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $967,491 during the year ended December 31, 2020. As of December 31, 2020, the Company had net current liability of $1,217,646 and total deficit of $1,216,410. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company recorded $235,202 write-off on leasehold improvement for the year ended December 31, 2020. The Company did not record any impairment losses on long-lived assets during the year ended December 31, 2019. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Company first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Impairment loss of $49,564 was recognized during the year ended December 31, 2020. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Impairment loss of $161,274 was recognized during the year ended December 31, 2020. Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12312020 12302019 Year end RMB: US$ exchange rate 6.52765 6.96676 Annual average RMB: US$ exchange rate 6.99410 6.89955 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Research and development All research and development costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. | |
Huale Group Co. Limited [Member] | |||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $245,480 during the six months ended June 30, 2020. As of June 30, 2020, the Company had net current liability of $694,937 and total deficit of $364,075. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit losses is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit losses allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the six months ended June 30, 2020 and the year ended December 31, 2019. Accounting for the impairment of long-lived assets The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry, introduction of new technologies, or if the Company has inadequate working capital to utilize the long-lived assets to generate the adequate profits. Impairment is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Company first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. No impairment loss is recognized during the six months ended June 30, 2020. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302020 06302019 Year end RMB: US$ exchange rate 7.068231 6.87644 Annual average RMB: US$ exchange rate 7.032406 6.61464 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Research and development All research and development costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income.” Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company adopted this pronouncement on its consolidated financial statements as of and for the year ended December 31, 2019. In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this ASU on update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted this ASU on January 1, 2019. Adoption of this standard resulted in the recognition of right-of-use assets of $264,164 and operating lease liabilities of $268,604. As of December 31, 2019, the adoption of this standard did not have a material impact on the Company’s operating results or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. |
Trade Receivables (Huale Group
Trade Receivables (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Trade Receivables | 3. Trade Receivables The Company does not provide any credit terms to its customers. | 3. Trade Receivables The Company does not provide any credit terms to its customers. | |
Huale Group Co. Limited [Member] | |||
Trade Receivables | 3. Trade Receivables The Company does not provide any credit terms to its customers. |
Other Receivables (Huale Group
Other Receivables (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Other Receivables | 5. Other Receivables June 30, December 31, $ $ Value Added Tax Receivables 17,797 29,477 Deposit 65,779 65,046 Others 12,394 1,730 95,970 96,253 | 5. Other Receivables December 31, December 31, $ $ Security deposit - 2,871 Value Added Tax Receivables 29,477 60,946 Deposit 65,046 56,251 Others 1,730 14,044 96,253 134,112 | |
Huale Group Co. Limited [Member] | |||
Other Receivables | 4. Other Receivables June 30, 2020 (Unaudited) December 31, 2019 (Audited) $ $ Security deposit - 2,871 Value Added Tax Receivables 65,682 60,946 Deposit 60,071 56,251 Others 34,152 14,044 159,905 134,112 |
Plant and Equipment (Huale Grou
Plant and Equipment (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Plant and Equipment | 6. Plant and Equipment Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2020 (Audited) 776 1,256 1,219 - 3,251 Additions during the year - - - - - Disposals during the year - - - - - Effects of currency translation 9 14 14 - 37 At June 30, 2021 (Unaudited) 785 1,270 1,233 - 3,288 Accumulated depreciation At December 31,2020 (Audited) 227 754 1,034 - 2,015 Depreciation during the year - 158 114 272 Disposals during the year - - - - - Effects of currency translation 9 9 19 37 At June 30, 2021 (Unaudited) 236 921 1,167 - 2,324 Net book value At December 31, 2020 (Audited) 549 502 185 - 1,236 At June 30, 2021 (Unaudited) 549 349 66 - 964 | 6. Plant and Equipment Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2019 (Audited) 368 651 1,142 612,507 614,668 Additions during the year 382 560 - 10,231 11,173 Disposals during the year - - - (622,738 ) (622,738 ) Effects of currency translation 26 45 77 - 148 At December 31, 2020 (Audited) 776 1,256 1,219 - 3,251 Accumulated depreciation At December 31,2019 (Audited) - 374 588 246,222 247,184 Depreciation during the year 212 331 379 141,297 142,219 Disposals during the year - - - (387,519 ) (387,519 ) Effects of currency translation 15 49 67 - 131 At December 31, 2020 (Audited) 227 754 1,034 - 2,015 Net book value At December 31, 2019 (Audited) 368 277 554 366,285 367,484 At December 31, 2020 (Audited) 549 502 185 - 1,236 | |
Huale Group Co. Limited [Member] | |||
Plant and Equipment | 5. Plant and Equipment Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2019 368 651 1,142 612,507 614,668 Additions during the year - 518 - 5,659 6,177 Effects of currency translation (5 ) (9 ) (16 ) (8,794 ) (8,824 ) At June 30, 2020 363 1,160 1,126 609,372 612,021 Accumulated depreciation At December 31,2019 - 374 588 246,222 247,184 Depreciation during the year - 107 188 69,950 70,245 Effects of currency translation - (5 ) (8 ) (3,535 ) (3,548 ) At June 30, 2020 - 476 768 312,637 313,881 Net book value At December 31, 2019 368 277 554 366,285 367,484 At June 30, 2020 363 684 358 296,736 298,140 |
Goodwill (Huale Group Co.Limite
Goodwill (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill | 8. Goodwill On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). Impairment loss of $49,564 was recognized during the year ended December 31, 2020. | |
Huale Group Co. Limited [Member] | ||
Goodwill | 6. Goodwill On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). No impairment loss on goodwill is recognized during the period ended June 30, 2020 and the year ended December 31, 2019. |
Other Payables and Accruals (Hu
Other Payables and Accruals (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Other Payables and Accruals | 8. Other payables and Accruals June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Accrued payroll and welfare payable 1,790 12,882 VAT and other taxes payable 208 6,380 Others (a) 575,226 501,678 577,224 520,940 (a) Others primarily consist of rental payable. | 9. Other payables and Accruals December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Accrued payroll and welfare payable 12,882 10,820 VAT and other taxes payable 6,380 557 Others (a) 501,678 284,241 520,940 295,618 (a) Others primarily consist of rental payable. | |
Huale Group Co. Limited [Member] | |||
Other Payables and Accruals | 7. Other payables and Accruals June 30, 2020 December 31, 2019 (Unaudited) (Audited) $ $ Accrued payroll and welfare payable 10,383 10,820 VAT and other taxes payable 21 557 Others (a) 361,990 284,241 372,394 295,618 (a) Others primarily consist of rental payable. |
Related Party Transactions (Hua
Related Party Transactions (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transactions | 9. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At June 30, 2021 and December 31, 2020, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2021 December 31, 2020 Relationship Huang Xiansheng 20,140 19,915 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd - 44,581 Company owned by President of the Company 20,140 64,496 At June 30, 2021 and December 31, 2020, the Company owed funds to the following related parties: June 30, 2021 December 31, 2020 Relationship Shenzhen Yeller Investment & Development Co., Ltd 9,672 - Company owned by President of the Company Huang Yusheng 544,142 374,553 President of the Company 553,814 374,553 These advances were unsecured, non-interest bearing and due on demand. (b) Transactions June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd 4,458 9,975 Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd 28,466 70,703 Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd 26,750 7,592 Sales of finished goods to Shenzhen Yeller Investment & Development Co., Ltd - 7,237 | 10. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. December, 2020 December 31, 2019 Relationship Huang Xiansheng.5in 19,915 25,837 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd 44,581 54,433 Company owned by President of the Company 64,496 80,270 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: December, 2020 December 31, 2019 Relationship Huang Zhicheng - 57,423 Former shareholder of the Company Huang Yusheng 374,553 137,791 President of the Company 374,553 195,214 These advances were unsecured, non-interest bearing and due on demand. (b) Transactions December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Purchases of goods from Shenzhen Yeller 9,975 232,238 Installation service charged by Shenzhen Yeller 70,703 45,351 Rental fee charged to Shenzhen Yeller 7,592 285,561 Sales of finished goods to Shenzhen Yeller 7,237 - | |
Huale Group Co. Limited [Member] | |||
Related Party Transactions | 8. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2020 December 31, 2019 Relationship Huang Xiansheng - 25,837 Minority shareholder of Shenzhen Yeller Shenzhen Huashengchuang Investment Development Co., Ltd 282,956 - Company owned by President of the Company Huale Acoustics Limited 123,126 81,784 Ultimate Holding Company Shenzhen Yeller Investment & Development Co., Ltd 39,503 54,433 Company owned by President of the Company 445,585 162,054 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: June 30, 2020 December 31, 2019 Relationship Huang Yusheng 791,283 105,942 Sole director These advances were unsecured, non-interest bearing and due on demand. (b) Transactions June 30, 2020 December 31, 2019 (Unaudited) (Audited) $ $ Purchases of goods from Shenzhen Yeller 13,553 232,238 Installation service charged by Shenzhen Yeller 10,283 45,351 Rental fee charged to Shenzhen Yeller - 285,561 |
Income Taxes (Huale Group Co.Li
Income Taxes (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Taxes | 10. Income Taxes Cayman Islands The Company is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the year ended December 31, 2020. eychelles The Company’s subsidiaries formed in the Republic of Seychelles are not subject to tax on its income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no withholding tax is imposed. Hong Kong The Company’s subsidiary formed in Hong Kong is subject to a profits tax rate of 16.5% for income generated in the special administrative region. PRC The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company’s subsidiaries incorporated in the PRC have unused net operating losses (“NOLs”) amounting to $1,065,588 available for carry forward to future years for PRC income tax reporting purposes as at June 30, 2021 (2020: $607,866). Income tax expense (benefits) June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) $ $ Loss before tax (185,750 ) (286,823 ) Tax credit calculated at statutory tax rate (46,438 ) (71,706 ) Effect of different tax rates in other countries - 112 Others 46,438 71,594 - - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. | 11. Income Taxes Cayman Islands The Company is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the year ended December 31, 2020. Seychelles The Company’s subsidiaries formed in the Republic of Seychelles are not subject to tax on its income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no withholding tax is imposed. Hong Kong The Company’s subsidiary formed in Hong Kong is subject to a profits tax rate of 16.5% for income generated in the special administrative region. PRC The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company’s subsidiaries incorporated in the PRC have unused net operating losses (“NOLs”) amounting to $418,712 available for carry forward to future years for PRC income tax reporting purposes as at December 31, 2020 (2019: $322,868). Income tax expense (benefits) December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Loss before tax (967,491 ) (284,655 ) Tax credit calculated at statutory tax rate (241,873 ) (71,164 ) Effect of different tax rates in other countries 36 118 Others 241,837 71,046 - - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. | |
Huale Group Co. Limited [Member] | |||
Income Taxes | 9. Income Taxes Cayman Islands The Company is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the period ended June 30, 2020. Seychelles The Company’s subsidiary formed in the Republic of Seychelles is not subject to tax on its income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no withholding tax is imposed. Hong Kong The Company’s subsidiary formed in Hong Kong is subject to a profits tax rate of 16.5% for income generated in the special administrative region. PRC The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company’s subsidiaries incorporated in the PRC have unused net operating losses (“NOLs”) amounting to $567,000 available for carry forward to future years for PRC income tax reporting purposes. Income tax expense (benefits) June 30, 2020 June 30, 2019 (Unaudited) (Unaudited) $ $ Loss before tax (245,480 ) (28,265 ) Tax credit calculated at statutory tax rate (61,370 ) (7,066 ) Effect of different tax rates in other countries 56 - Others 61,314 7,066 - - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. |
Leases (Huale Group Co.Limited)
Leases (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Leases | 12. Leases Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022 and a three-year lease agreement with Shenzhen Yeller Investment & Development Co., Ltd commencing on April 1, 2021 and expiring on March 31, 2024. As of June 30, 2021, the Company has $277,516 of right-of-use assets, $248,942 in current operating lease liabilities and $181,375 in non-current operating lease liabilities as of June 30, 2021. Significant assumptions and judgments made as part of the adoption of this lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2021 As of December 31, 2020 (Audited) (Audited) $ $ Within 1 year 259,195 183,990 After 1 year but within 5 years 188,729 - Total lease payments 447,924 183,990 Less: imputed interest (17,607 ) (6,349 ) Total lease obligations 430,317 177,641 Less: current obligations 248,942 (177,641 ) Long-term lease obligations 181,375 - | 13. Leases Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022. As of December 31, 2020, the Company has $Nil of right-of-use assets, $177,641 in current operating lease liabilities and $Nil in non-current operating lease liabilities as of December 31, 2020. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of December 31, 2020 As of December 31, 2019 (Audited) (Audited) $ $ Within 1 year 183,990 113,291 After 1 year but within 5 years - 171,630 Total lease payments 183,990 284,921 Less: imputed interest (6,349 ) (16,318 ) Total lease obligations 177,641 268,603 Less: current obligations (177,641 ) (102,159 ) Long-term lease obligations - 166,444 | |
Huale Group Co. Limited [Member] | |||
Leases | 10. Leases Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022. As of June 30, 2020, The Company has $209,977 of right-of-use assets, $102,902 in current operating lease liabilities and $112,045 in non-current operating lease liabilities as of June 30, 2020. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2020 As of December 31, 2019 (Unaudited) (Audited) $ $ Within 1 year 113,291 113,291 After 1 year but within 5 years 122,732 171,630 Total lease payments 236,023 284,921 Less: imputed interest (21,076 ) (16,318 ) Total lease obligations 214,947 268,603 Less: current obligations (102,902 ) (102,159 ) Long-term lease obligations 112,045 166,444 Based on the lease agreement entered into with CEEC, the Company is entitled to a subsidy of RMB 3,245,000 ($471,901) for renovation if the Company fulfills its contractual obligations. The full subsidy amount has been recorded in 2018 as deferred subsidy income when the renovation was completed in March 2018 and the Company commenced operations thereafter. Deferred subsidy is amortized on a straight line basis over 52 months, which represents the remaining lease term of the CEEC contract. As of June 30, 2020, the deferred subsidy income amounted to $220,719. |
Reserves (Huale Group Co.Limite
Reserves (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Reserves | 13. Reserves Statutory reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. During the six months ended June 30, 2021 and the year ended December 31, 2020, the Company did not accrue any statutory reserve. Foreign currency translation reserve The foreign currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. | 14. Reserves Statutory reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. During the year ended December 31, 2020 and 2019, the Company did not accrue any statutory reserve. Foreign currency translation reserve The foreign currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. | |
Huale Group Co. Limited [Member] | |||
Reserves | 11. Reserves Statutory reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. During the six months ended June 30, 2020 and the year ended December 31, 2019, the Company did not accrue any statutory reserve. Foreign Currency translation reserve The foreign currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. |
Risks (Huale Group Co.Limited)
Risks (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Risks | 14. Risks A. Credit risk The Company’s deposits are with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk from credit extended to customers. B. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. C. Interest risk The Company does not have any liability that is subject to interest rate risk. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. | 15. Risks A. Credit risk The Company’s deposits are with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk from credit extended to customers. B. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. C. Interest risk The Company does not have any liability that is subject to interest rate risk. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. | |
Huale Group Co. Limited [Member] | |||
Risks | 12. Risks A. Credit risk The Company’s deposits are with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk from credit extended to customers. B. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. C. Interest risk The Company does not have any liability that is subject to interest rate risk. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. |
Subsequent Events (Huale Group
Subsequent Events (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Subsequent Events | 15. Subsequent Events The management cannot foresee whether any reoccurrence of COVID-19 will be forthcoming in the future. If any reoccurrence of COVID-19 is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee. Any of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. The Company ceased its operation at CEEC exhibition mall in March 2021 due to the change in mall operations. Arising from the cessation, the Company entered into a lease agreement with Shenzhen Yeller Investment in Development Co., Ltd. to lease a new premise at F26 Culture and Sport Buidling, Futian Sport Park, No. 3030, Fuqiang Road, Futian District, Shenzhen, Guangdong, China. Consequently, the ROU assets and leasehold improvements in connection with the lease at CEEC exhibition mall were written off as at December 31, 2020. The Company is still pending for resolution with the CEEC mall operator on the outstanding lease obligations and deferred subsidy income received under the terms of the lease agreement. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. | 16. Subsequent Events The management cannot foresee whether any reoccurrence of COVID-19 will be forthcoming in the future. If any reoccurrence of COVID-19 is not effectively and timely controlled, the business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that the management cannot foresee. Any of these factors and other factors beyond management control could have an adverse effect on the overall business environment, cause uncertainties in the regions where the Company conducts its business, which may adversely impact the business, financial condition and results of operations. The Company ceased its operation at CEEC exhibition mall in March 2021 due to the change in mall operations. Arising from the cessation, the Company entered into a lease agreement with Shenzhen Yeller Investment Development Co., Ltd. to lease a new premise at F26 Culture and Sport Buidling, Futian Sport Park, No. 3030, Fuqiang Road, Futian District, Shenzhen, Guangdong, China. Consequently, the ROU assets and leasehold improvements in connection with the lease at CEEC exhibition mall were written off as at December 31, 2020. The Company is still pending for resolution with the CEEC mall operator on the outstanding lease obligations and deferred subsidy income received under the terms of the lease agreement. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. | |
Huale Group Co. Limited [Member] | |||
Subsequent Events | 13. Subsequent Events The outbreak of coronavirus (COVID-19) in January 2020 resulted in an interruption to the normal business operations. Management is evaluating the impact and developing actions plan to minimize the effect of the COVID-19 pandemic and to recover business as soon as possible. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. |
Organization and Principal Ac_3
Organization and Principal Activities (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization and Principal Activities | 1. Organization and Principal Activities Huale Acoustics Limited (“the Company”) was originally incorporated in Nevada under the name “Illumitry Corp.” on October 17, 2014. It currently maintains its principal executive offices at Floor 13, Building B1, Wisdom Plaza, Qiaoxiang Road, Nanshan District, Shenzhen, Guangdong Province, China 518000. The Company was formed to commence operations in the field of embroidery on fabric in Armenia. The Company filed a registration statement on Form S-1 with the SEC on March 18, 2015, which was declared effective on October 6, 2015. In October 2017, subsequent to a change of control, the Company’s name was changed to Huale Acoustics Corporation and management of the Company abandoned its business plan and determined to seek a possible business combination. Immediately prior to the Share Exchange, the business purpose of the Company was to seek the acquisition of, or merger with, an existing company. As a result, the Company became a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with nominal assets and no business operations, and it sought to identify, evaluate and investigate various companies with the intent that, if such investigation warranted, a reverse merger transaction could be negotiated and completed pursuant to which the Company would acquire a target company with an operating business with the intent of continuing the acquired company’s business as a publicly held entity. On December 21, 2018, our Board of Directors unanimously adopted resolutions approving the redomicile of the Company from Nevada to the Cayman Islands. The Company changed its domicile, effective May 7, 2019, by merging into its wholly owned Cayman Islands subsidiary, Huale Acoustics Limited (the “Redomicile Merger”). As a result of the Redomicile Merger, the Company’s name was changed to Huale Acoustics Limited. On April 28, 2020, the Company completed a Share Exchange with the shareholders of Huale Group Co., Limited. Under the Share Exchange Agreement, Huale Group Co. Limited’s shareholders exchanged all of the shares that they held in Huale Group Co. Limited for 32,625,000 ordinary shares of the Company. Consequently, Huale Group Co. Limited’s shareholders own approximately 90% of the total outstanding ordinary shares of the Company and the former shareholders of the Company own approximately 10%. From and after the Closing Date of the Share Exchange described above, the Company’s operations will now consist of the operations of Huale Group Co., Limited and its subsidiaries. As a result, Huale Group Co. Limited is now a wholly owned subsidiary of the Company. Huale Group Co., Limited (“HGL”) was incorporated under the laws of the Republic of Seychelles on September 28, 2016. HGL did not have operations that generated revenues and positive cash flows; however, the Company’s management has been reviewing investment opportunities. Huale Holding Co., Limited (“HHC”) was incorporated under the laws of the Republic of Seychelles on May 15, 2017. HHC is an investment holding company. It is a wholly owned subsidiary of the Company. Its sole director is Huang Yusheng. Huale (HK) Investment Co., Limited (“HHK”) was incorporated on September 16, 2016 in Hong Kong with limited liability. Its original shareholder was Huang Yusheng. On May 29, 2018, HHC and Huang Yusheng entered into an agreement whereby Huang Yusheng transferred his entire equity in the company to HHC. Therefore, HHK became a wholly owned subsidiary of HHC. On March 27, 2017, Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited. (“QCM”) was incorporated as a wholly owned foreign entity in the PRC. It is a wholly owned subsidiary of HHK. On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72) Shenzhen Yeller Video & Technology Co., Ltd. (“Shenzhen Yeller”) was incorporated under the laws of the PRC on May 5, 2017. Its primary businesses are gathering and selling high-quality audio and video products. Located in Futian District, Shenzhen, Shenzhen Yeller will also establish branches in first- and second-tier cities. As of June 30, 2021, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media | 1. Organization and Principal Activities Huale Acoustics Limited (“the Company”) was originally incorporated in Nevada under the name “Illumitry Corp.” on October 17, 2014. It currently maintains its principal executive offices at Floor 13, Building B1, Wisdom Plaza, Qiaoxiang Road, Nanshan District, Shenzhen, Guangdong Province, China 518000. The Company was formed to commence operations in the field of embroidery on fabric in Armenia. The Company filed a registration statement on Form S-1 with the SEC on March 18, 2015, which was declared effective on October 6, 2015. In October 2017, subsequent to a change of control, the Company’s name was changed to Huale Acoustics Corporation and management of the Company abandoned its business plan and determined to seek a possible business combination. Immediately prior to the Share Exchange, the business purpose of the Company was to seek the acquisition of, or merger with, an existing company. As a result, the Company became a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with nominal assets and no business operations, and it sought to identify, evaluate and investigate various companies with the intent that, if such investigation warranted, a reverse merger transaction could be negotiated and completed pursuant to which the Company would acquire a target company with an operating business with the intent of continuing the acquired company’s business as a publicly held entity. On December 21, 2018, our Board of Directors unanimously adopted resolutions approving the redomicile of the Company from Nevada to the Cayman Islands. The Company changed its domicile, effective May 7, 2019, by merging into its wholly owned Cayman Islands subsidiary, Huale Acoustics Limited (the “Redomicile Merger”). As a result of the Redomicile Merger, the Company’s name was changed to Huale Acoustics Limited. On April 28, 2020, the Company completed a Share Exchange with the shareholders of Huale Group Co., Limited. Under the Share Exchange Agreement, Huale Group Co. Limited’s shareholders exchanged all of the shares that they held in Huale Group Co. Limited for 32,625,000 ordinary shares of the Company. Consequently, Huale Group Co. Limited’s shareholders own approximately 90% of the total outstanding ordinary shares of the Company and the former shareholders of the Company own approximately 10%. From and after the Closing Date of the Share Exchange described above, the Company’s operations will now consist of the operations of Huale Group Co., Limited and its subsidiaries. As a result, Huale Group Co. Limited is now a wholly owned subsidiary of the Company. Huale Group Co., Limited (“HGL”) was incorporated under the laws of the Republic of Seychelles on September 28, 2016. HGL did not have operations that generated revenues and positive cash flows; however, the Company’s management has been reviewing investment opportunities. Huale Holding Co., Limited (“HHC”) was incorporated under the laws of the Republic of Seychelles on May 15, 2017. HHC is an investment holding company. It is a wholly owned subsidiary of the Company. Its sole director is Huang Yusheng. Huale (HK) Investment Co., Limited (“HHK”) was incorporated on September 16, 2016 in Hong Kong with limited liability. Its original shareholder was Huang Yusheng. On May 29, 2018, HHC and Huang Yusheng entered into an agreement whereby Huang Yusheng transferred his entire equity in the company to HHC. Therefore, HHK became a wholly owned subsidiary of HHC. On March 27, 2017, Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited. (“QCM”) was incorporated as a wholly owned foreign entity in the PRC. It is a wholly owned subsidiary of HHK. On August 2, 2019, QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.’s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72) Shenzhen Yeller Video & Technology Co., Ltd. (“Shenzhen Yeller”) was incorporated under the laws of the PRC on May 5, 2017. Its primary businesses are gathering and selling high-quality audio and video products. Located in Futian District, Shenzhen, Shenzhen Yeller also intends to establish branches in first- and second-tier cities, subject to sufficient capital being available. As of December 31, 2020, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Organization and Principal Activities | 1. Organization and Principal Activities Shenzhen Yeller Video & Technology Co., Ltd. (“the Company”) was incorporated under the laws of PRC on May 5 th | 1. Organization and Principal Activities Shenzhen Yeller Video & Technology Co., Ltd. (“the Company”) was incorporated under the laws of PRC on May 5 th |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of 185,750 during the six months ended June 30, 2021. As of June 30, 2021, the Company had net current liability of $1,517,991 and total deficit of $1,420,886. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted ASU 2016-02 on January 1, 2019 and recognize operating lease liabilities with corresponding right of use (“ROU”) assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases with a term longer than 12 months. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes several changes meant to add, modify or remove specific disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The modifications are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption, permitted. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $967,491 during the year ended December 31, 2020. As of December 31, 2020, the Company had net current liability of $1,217,646 and total deficit of $1,216,410. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company recorded $235,202 write-off on leasehold improvement for the year ended December 31, 2020. The Company did not record any impairment losses on long-lived assets during the year ended December 31, 2019. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Company first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Impairment loss of $49,564 was recognized during the year ended December 31, 2020. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Impairment loss of $161,274 was recognized during the year ended December 31, 2020. Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12312020 12302019 Year end RMB: US$ exchange rate 6.52765 6.96676 Annual average RMB: US$ exchange rate 6.99410 6.89955 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Research and development All research and development costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $102,394 during the six months ended June 30, 2020. As of June 30, 2020, the Company had net current liability of $25,532 and total equity of $370,177. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit losses is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit losses allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the six months ended June 30, 2020 and the year ended December 31, 2019. Accounting for the impairment of long-lived assets The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry, introduction of new technologies, or if the Company has inadequate working capital to utilize the long-lived assets to generate the adequate profits. Impairment is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302020 06302019 Year end RMB: US$ exchange rate 7.068231 6.87644 Annual average RMB: US$ exchange rate 7.032406 6.61464 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, the Company is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, the Company became general taxpayer and subject to VAT rates of 13%, 9% and 6%. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Research and development All research and development costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company adopted this pronouncement on its consolidated financial statements as of and for the year ended December 31, 2019. In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this ASU on update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted this ASU on January 1, 2019. Adoption of this standard resulted in the recognition of right-of-use assets of $264,164 and operating lease liabilities of $268,604. As of December 31, 2019, the adoption of this standard did not have a material impact on the Company’s operating results or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $103,664 during the year ended December 31, 2019. As of December 31, 2019, the Company had net current liability of $383,985 and total deficit of $89,339. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. the Company maintains its general ledger and journals with the accrual method accounting. Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off against allowances. Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the year ended December 31, 2019 and 2018. Accounting for the impairment of long-lived assets The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry, introduction of new technologies, or if the Company has inadequate working capital to utilize the long-lived assets to generate the adequate profits. Impairment is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12312019 12312018 Year end RMB: US$ exchange rate 6.96676 6.87644 Annual average RMB: US$ exchange rate 6.89955 6.61464 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, the Company is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, the Company became general taxpayer and subject to VAT rates of 13%, 9% and 6%. Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. Advertising All advertising costs are expensed as incurred. Shipping and handling All outbound shipping and handling costs are expensed as incurred. Research and development All research and development costs are expensed as incurred. Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Recent accounting pronouncements In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company adopted this pronouncement on its consolidated financial statements as of and for the year ended December 31, 2019. In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this ASU on update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted this ASU on January 1, 2019. Adoption of this standard resulted in the recognition of right-of-use assets of $264,164 and operating lease liabilities of $268,604. As of December 31, 2019, the adoption of this standard did not have a material impact on the Company’s operating results or cash flows. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. |
Trade Receivables (Shenzhen Yel
Trade Receivables (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Trade Receivables | 3. Trade Receivables The Company does not provide any credit terms to its customers. | 3. Trade Receivables The Company does not provide any credit terms to its customers. | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Trade Receivables | 3. Trade Receivables The Company does not provide any credit terms to its customers. | 3. Trade Receivables The Company does not provide any credit terms to its customers. |
Other Receivables (Shenzhen Yel
Other Receivables (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Receivables | 5. Other Receivables June 30, December 31, $ $ Value Added Tax Receivables 17,797 29,477 Deposit 65,779 65,046 Others 12,394 1,730 95,970 96,253 | 5. Other Receivables December 31, December 31, $ $ Security deposit - 2,871 Value Added Tax Receivables 29,477 60,946 Deposit 65,046 56,251 Others 1,730 14,044 96,253 134,112 | |
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||
Other Receivables | 4. Other Receivables December 31, 2019 December 31, 2018 Security deposit 2,871 2,908 Value Added Tax Receivables 60,946 54,031 Deposit 56,251 61,747 Others 14,044 - $ 134,112 $ 118,686 |
Plant and Equipment (Shenzhen Y
Plant and Equipment (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Plant and Equipment | 6. Plant and Equipment Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2020 (Audited) 776 1,256 1,219 - 3,251 Additions during the year - - - - - Disposals during the year - - - - - Effects of currency translation 9 14 14 - 37 At June 30, 2021 (Unaudited) 785 1,270 1,233 - 3,288 Accumulated depreciation At December 31,2020 (Audited) 227 754 1,034 - 2,015 Depreciation during the year - 158 114 272 Disposals during the year - - - - - Effects of currency translation 9 9 19 37 At June 30, 2021 (Unaudited) 236 921 1,167 - 2,324 Net book value At December 31, 2020 (Audited) 549 502 185 - 1,236 At June 30, 2021 (Unaudited) 549 349 66 - 964 | 6. Plant and Equipment Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2019 (Audited) 368 651 1,142 612,507 614,668 Additions during the year 382 560 - 10,231 11,173 Disposals during the year - - - (622,738 ) (622,738 ) Effects of currency translation 26 45 77 - 148 At December 31, 2020 (Audited) 776 1,256 1,219 - 3,251 Accumulated depreciation At December 31,2019 (Audited) - 374 588 246,222 247,184 Depreciation during the year 212 331 379 141,297 142,219 Disposals during the year - - - (387,519 ) (387,519 ) Effects of currency translation 15 49 67 - 131 At December 31, 2020 (Audited) 227 754 1,034 - 2,015 Net book value At December 31, 2019 (Audited) 368 277 554 366,285 367,484 At December 31, 2020 (Audited) 549 502 185 - 1,236 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Plant and Equipment | 4. Plant and Equipment Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ Cost At December 31,2019 651 1,142 612,507 614,300 Additions during the year 518 - 5,659 6,177 Effects of currency translation (9 ) (16 ) (8,794 ) (8,819 ) At June 30, 2020 1,160 1,126 609,372 611,658 Accumulated depreciation At December 31,2019 374 588 246,222 247,184 Depreciation during the year 107 188 69,950 70,245 Effects of currency translation (5 ) (8 ) (3,535 ) (3,548 ) At June 30, 2020 476 768 312,637 313,881 Net book value At December 31, 2019 277 554 366,285 367,116 At June 30, 2020 684 358 296,735 297,777 Depreciation expense for the six months ended June 30, 2020 and 2019 was $70,245 and $71,836, respectively. | 5. Plant and Equipment Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ Cost At December 31,2018 660 1,157 616,734 618,551 Additions during the year - - 3,832 3,832 Effects of currency translation (9 ) (15 ) (8,059 ) (8,083 ) At December 31, 2019 651 1,142 612,507 614,300 Accumulated depreciation At December 31,2018 159 210 106,491 106,860 Depreciation during the year 220 386 142,965 143,571 Effects of currency translation (5 ) (8 ) (3,234 ) (3,247 ) At December 31, 2019 374 588 246,222 247,184 Net book value At December 31, 2018 501 947 510,243 511,691 At December 31, 2019 277 554 366,285 367,116 Depreciation expense for the years ended December 31, 2019 and 2018 was $143,571 and $111,089 respectively. |
Related Party Transactions (She
Related Party Transactions (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions | 9. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At June 30, 2021 and December 31, 2020, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2021 December 31, 2020 Relationship Huang Xiansheng 20,140 19,915 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd - 44,581 Company owned by President of the Company 20,140 64,496 At June 30, 2021 and December 31, 2020, the Company owed funds to the following related parties: June 30, 2021 December 31, 2020 Relationship Shenzhen Yeller Investment & Development Co., Ltd 9,672 - Company owned by President of the Company Huang Yusheng 544,142 374,553 President of the Company 553,814 374,553 These advances were unsecured, non-interest bearing and due on demand. (b) Transactions June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd 4,458 9,975 Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd 28,466 70,703 Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd 26,750 7,592 Sales of finished goods to Shenzhen Yeller Investment & Development Co., Ltd - 7,237 | 10. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. December, 2020 December 31, 2019 Relationship Huang Xiansheng.5in 19,915 25,837 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd 44,581 54,433 Company owned by President of the Company 64,496 80,270 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: December, 2020 December 31, 2019 Relationship Huang Zhicheng - 57,423 Former shareholder of the Company Huang Yusheng 374,553 137,791 President of the Company 374,553 195,214 These advances were unsecured, non-interest bearing and due on demand. (b) Transactions December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Purchases of goods from Shenzhen Yeller 9,975 232,238 Installation service charged by Shenzhen Yeller 70,703 45,351 Rental fee charged to Shenzhen Yeller 7,592 285,561 Sales of finished goods to Shenzhen Yeller 7,237 - | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Related Party Transactions | 5. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2020 December 31, 2019 Relationship Huang Xiansheng - 25,837 Shareholder Huang Yusheng - 86,123 President of the Company Shenzhen Huashengchuang Investment Development Co., Ltd 424,434 - Company owned by President of the Company Shenzhen Yeller Investment & Development Co., Ltd 53,651 54,433 Company owned by President of the Company 478,085 166,393 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: June 30, 2020 December 31, 2019 Relationship Huang Yusheng 15,367 - President of the Company 15,367 - These advances were unsecured, non-interest bearing and due on demand. | 6. Related Party Transactions (a) The Company had the following balances due to and due from related parties: At December 31, 2019 and 2018, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. December 31, 2019 December 31, 2018 Relationship Huang Xiansheng 25,837 - Shareholder Huang Yusheng 86,123 - President of the Company Shenzhen Yeller Investment & Development Co., Ltd 54,433 - Company owned by President of the Company 166,393 - At December 31, 2019 and 2018, the Company owed funds to the following related parties; except for the balance owed to Shenzhen Yeller Investment & Development Co., Ltd, these advances were unsecured and non-interest bearing and due on demand: December 31, 2019 December 31, 2018 Relationship Shenzhen Yeller Investment & Development Co., Ltd - 149,492 Company owned by President of the Company Huang Xiansheng - 91,617 Shareholder Huang Yusheng - 219,590 President of the Company - 460,699 The balance owed to Shenzhen Yeller Investment & Development Co., Ltd carried a monthly interest rate of 4.35%, and has been fully settled in 2019. |
Other Payables (Shenzhen Yeller
Other Payables (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 12 Months Ended |
Dec. 31, 2019 | |
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |
Other Payables | 7. Other Payables December 31, 2019 December 31, 2018 Rental payable 270,238 160,496 Management fee for rental property 1,538 - Others 3,391 43,700 $ 275,167 $ 204,196 |
Income Taxes (Shenzhen Yeller A
Income Taxes (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | 10. Income Taxes Cayman Islands The Company is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the year ended December 31, 2020. eychelles The Company’s subsidiaries formed in the Republic of Seychelles are not subject to tax on its income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no withholding tax is imposed. Hong Kong The Company’s subsidiary formed in Hong Kong is subject to a profits tax rate of 16.5% for income generated in the special administrative region. PRC The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company’s subsidiaries incorporated in the PRC have unused net operating losses (“NOLs”) amounting to $1,065,588 available for carry forward to future years for PRC income tax reporting purposes as at June 30, 2021 (2020: $607,866). Income tax expense (benefits) June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) $ $ Loss before tax (185,750 ) (286,823 ) Tax credit calculated at statutory tax rate (46,438 ) (71,706 ) Effect of different tax rates in other countries - 112 Others 46,438 71,594 - - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. | 11. Income Taxes Cayman Islands The Company is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the year ended December 31, 2020. Seychelles The Company’s subsidiaries formed in the Republic of Seychelles are not subject to tax on its income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no withholding tax is imposed. Hong Kong The Company’s subsidiary formed in Hong Kong is subject to a profits tax rate of 16.5% for income generated in the special administrative region. PRC The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company’s subsidiaries incorporated in the PRC have unused net operating losses (“NOLs”) amounting to $418,712 available for carry forward to future years for PRC income tax reporting purposes as at December 31, 2020 (2019: $322,868). Income tax expense (benefits) December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Loss before tax (967,491 ) (284,655 ) Tax credit calculated at statutory tax rate (241,873 ) (71,164 ) Effect of different tax rates in other countries 36 118 Others 241,837 71,046 - - In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Income Taxes | 6. Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. The Company is incorporated in the PRC and is subject to profits tax rate at 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company has unused net operating losses (“NOLs”) available for carry forward to future years for PRC income tax reporting purposes up to five years. The Company recorded a deferred tax asset in the amount of $0 at December 31, 2019 and June 30, 2020. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. | 8. Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. The Company is subject to profits tax rate at 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. The Company has unused net operating losses (“NOLs”) available for carry forward to future years for PRC income tax reporting purposes up to five years. The Company recorded a deferred tax asset in the amount of $0 at December 31, 2019 and 2018. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. |
Lease Commitments (Shenzhen Yel
Lease Commitments (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Commitments | 12. Leases Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022 and a three-year lease agreement with Shenzhen Yeller Investment & Development Co., Ltd commencing on April 1, 2021 and expiring on March 31, 2024. As of June 30, 2021, the Company has $277,516 of right-of-use assets, $248,942 in current operating lease liabilities and $181,375 in non-current operating lease liabilities as of June 30, 2021. Significant assumptions and judgments made as part of the adoption of this lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2021 As of December 31, 2020 (Audited) (Audited) $ $ Within 1 year 259,195 183,990 After 1 year but within 5 years 188,729 - Total lease payments 447,924 183,990 Less: imputed interest (17,607 ) (6,349 ) Total lease obligations 430,317 177,641 Less: current obligations 248,942 (177,641 ) Long-term lease obligations 181,375 - | 13. Leases Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022. As of December 31, 2020, the Company has $Nil of right-of-use assets, $177,641 in current operating lease liabilities and $Nil in non-current operating lease liabilities as of December 31, 2020. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of December 31, 2020 As of December 31, 2019 (Audited) (Audited) $ $ Within 1 year 183,990 113,291 After 1 year but within 5 years - 171,630 Total lease payments 183,990 284,921 Less: imputed interest (6,349 ) (16,318 ) Total lease obligations 177,641 268,603 Less: current obligations (177,641 ) (102,159 ) Long-term lease obligations - 166,444 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Lease Commitments | 7. Lease Commitments Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022. As of June 30, 2020, The Company has $209,977 of right-of-use assets, $102,902 in current operating lease liabilities and $112,045 in non-current operating lease liabilities as of June 30, 2020. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2020 As of December 31, 2019 (Unaudited) (Audited) $ $ Within 1 year 113,291 113,291 After 1 year but within 5 years 122,732 171,630 Total lease payments 236,023 284,921 Less: imputed interest (21,076 ) (16,318 ) Total lease obligations 214,947 268,603 Less: current obligations (102,902 ) (102,159 ) Long-term lease obligations 112,045 166,444 Based on the lease agreement entered into with CEEC, the Company is entitled to a subsidy of RMB 3,245,000 ($471,901) for renovation if the Company fulfills its contractual obligations. The full subsidy amount has been recorded in 2018 as deferred subsidy income when the renovation was completed in March 2018 and the Company commenced operations thereafter. Deferred subsidy is amortized on a straight line basis over 52 months, which represents the remaining lease term of the CEEC contract. As of June 30, 2020, the deferred subsidy income amounted to $220,719. | 9. Lease Commitments The adoption of the new lease guidance did not have a material impact on the Company’s results of operations or liquidity, but resulted in the recognition of operating lease liabilities and operating lease right-of-use assets on its balance sheets. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company entered into a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022. The Company has $ 264,164 of right-of-use assets, $102,159 in current operating lease liabilities and $166,444 in non-current operating lease liabilities as of December 31, 2019, Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of December 31, 2019 $ Within 1 year 113,291 After 1 year but within 5 years 171,630 Total lease payments 284,921 Less: imputed interest (16,318 ) Total lease obligations 268,603 Less: current obligations (102,159 ) Long-term lease obligations 166,444 Based on the lease agreement entered into with CEEC, the Company is entitled to a subsidy of RMB 3,245,000 ($471,901) for renovation if the Company fulfills its contractual obligations. The full subsidy amount has been recorded in 2018 as deferred subsidy income when the renovation was completed in March 2018 and the Company commenced operations thereafter. Deferred subsidy is amortized on a straight line basis over 52 months, which represents the remaining lease term of the CEEC contract. As of December 31, 2019, the deferred subsidy income amounted to $277,678. |
Risks (Shenzhen Yeller Audio &
Risks (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Risks | 14. Risks A. Credit risk The Company’s deposits are with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk from credit extended to customers. B. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. C. Interest risk The Company does not have any liability that is subject to interest rate risk. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. | 15. Risks A. Credit risk The Company’s deposits are with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk from credit extended to customers. B. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. C. Interest risk The Company does not have any liability that is subject to interest rate risk. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Risks | 8. Risks A. Credit risk The Company’s deposits are made with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk borne from credit extended to customers. B. Interest risk The Company does not have any liability that is subject to interest rate risk. C. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. | 10. Risks A. Credit risk The Company’s deposits are made with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss if the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk borne from credit extended to customers. B. Interest risk The Company does not have any liability that is subject to interest rate risk. C. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Company’s operations in the PRC are subject to special 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 environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. D. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact the Company’s results of operations. |
Subsequent Events (Shenzhen Yel
Subsequent Events (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subsequent Events | 15. Subsequent Events The management cannot foresee whether any reoccurrence of COVID-19 will be forthcoming in the future. If any reoccurrence of COVID-19 is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee. Any of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. The Company ceased its operation at CEEC exhibition mall in March 2021 due to the change in mall operations. Arising from the cessation, the Company entered into a lease agreement with Shenzhen Yeller Investment in Development Co., Ltd. to lease a new premise at F26 Culture and Sport Buidling, Futian Sport Park, No. 3030, Fuqiang Road, Futian District, Shenzhen, Guangdong, China. Consequently, the ROU assets and leasehold improvements in connection with the lease at CEEC exhibition mall were written off as at December 31, 2020. The Company is still pending for resolution with the CEEC mall operator on the outstanding lease obligations and deferred subsidy income received under the terms of the lease agreement. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. | 16. Subsequent Events The management cannot foresee whether any reoccurrence of COVID-19 will be forthcoming in the future. If any reoccurrence of COVID-19 is not effectively and timely controlled, the business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that the management cannot foresee. Any of these factors and other factors beyond management control could have an adverse effect on the overall business environment, cause uncertainties in the regions where the Company conducts its business, which may adversely impact the business, financial condition and results of operations. The Company ceased its operation at CEEC exhibition mall in March 2021 due to the change in mall operations. Arising from the cessation, the Company entered into a lease agreement with Shenzhen Yeller Investment Development Co., Ltd. to lease a new premise at F26 Culture and Sport Buidling, Futian Sport Park, No. 3030, Fuqiang Road, Futian District, Shenzhen, Guangdong, China. Consequently, the ROU assets and leasehold improvements in connection with the lease at CEEC exhibition mall were written off as at December 31, 2020. The Company is still pending for resolution with the CEEC mall operator on the outstanding lease obligations and deferred subsidy income received under the terms of the lease agreement. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Subsequent Events | 9. Subsequent Events The outbreak of coronavirus (COVID-19) in January 2020 resulted in an interruption to the normal business operations. Management is evaluating the impact and developing actions plan to minimize the effect of the COVID-19 pandemic and to recover business as soon as possible. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. | 11. Subsequent Events The outbreak of coronavirus (COVID-19) in January 2020 resulted in an interruption to the normal business operations. Management is evaluating the impact and developing actions plan to minimize the effect of the COVID-19 pandemic and to recover business as soon as possible. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of 185,750 during the six months ended June 30, 2021. As of June 30, 2021, the Company had net current liability of $1,517,991 and total deficit of $1,420,886. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $967,491 during the year ended December 31, 2020. As of December 31, 2020, the Company had net current liability of $1,217,646 and total deficit of $1,216,410. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Method of Accounting | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. |
Use of Estimates | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. |
Business Combinations | Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. | Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. |
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. |
Accounts Receivable | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. |
Inventories | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. |
Advances and Prepayments to Suppliers | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. |
Plant and Equipment | Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. | Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. |
Impairment of Long-Lived Assets | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company recorded $235,202 write-off on leasehold improvement for the year ended December 31, 2020. The Company did not record any impairment losses on long-lived assets during the year ended December 31, 2019. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Company first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Impairment loss of $49,564 was recognized during the year ended December 31, 2020. | |
Statutory Reserves | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. |
Leases | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Impairment loss of $161,274 was recognized during the year ended December 31, 2020. |
Value Added Tax ("VAT") | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. |
Foreign Currency Translation | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12312020 12302019 Year end RMB: US$ exchange rate 6.52765 6.96676 Annual average RMB: US$ exchange rate 6.99410 6.89955 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. |
Income Recognition | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. |
Advertising | Advertising All advertising costs are expensed as incurred. | Advertising All advertising costs are expensed as incurred. |
Shipping and Handling | Shipping and handling All outbound shipping and handling costs are expensed as incurred. | Shipping and handling All outbound shipping and handling costs are expensed as incurred. |
Research and development | Research and development All research and development costs are expensed as incurred. | |
Retirement Benefits | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. |
Income Taxes | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. |
Comprehensive Income | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. |
Earnings Per Share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Financial Instruments | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. |
Commitments and Contingencies | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
Recent Accounting Pronouncements | Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted ASU 2016-02 on January 1, 2019 and recognize operating lease liabilities with corresponding right of use (“ROU”) assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases with a term longer than 12 months. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes several changes meant to add, modify or remove specific disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The modifications are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption, permitted. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Policies) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Basis of Presentation | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of 185,750 during the six months ended June 30, 2021. As of June 30, 2021, the Company had net current liability of $1,517,991 and total deficit of $1,420,886. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $967,491 during the year ended December 31, 2020. As of December 31, 2020, the Company had net current liability of $1,217,646 and total deficit of $1,216,410. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
Method of Accounting | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. | |
Use of Estimates | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. | |
Business Combinations | Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. | Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. | |
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. | |
Accounts Receivables | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. | |
Inventories | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. | |
Advances and Prepayments to Suppliers | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | |
Leasehold Improvement and Equipment | Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. | Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. | |
Impairment of Long-Lived Assets | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company recorded $235,202 write-off on leasehold improvement for the year ended December 31, 2020. The Company did not record any impairment losses on long-lived assets during the year ended December 31, 2019. | |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Company first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Impairment loss of $49,564 was recognized during the year ended December 31, 2020. | ||
Statutory Reserves | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | |
Leases | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Impairment loss of $161,274 was recognized during the year ended December 31, 2020. | |
Value Added Tax ("VAT") | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | |
Foreign Currency Translation | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12312020 12302019 Year end RMB: US$ exchange rate 6.52765 6.96676 Annual average RMB: US$ exchange rate 6.99410 6.89955 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. | |
Income Recognition | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | |
Advertising | Advertising All advertising costs are expensed as incurred. | Advertising All advertising costs are expensed as incurred. | |
Shipping and Handling | Shipping and handling All outbound shipping and handling costs are expensed as incurred. | Shipping and handling All outbound shipping and handling costs are expensed as incurred. | |
Research and Development | Research and development All research and development costs are expensed as incurred. | ||
Retirement Benefits | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. | |
Income Taxes | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. | |
Comprehensive Income | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. | |
Financial Instruments | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | |
Commitments and Contingencies | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | |
Recent Accounting Pronouncements | Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted ASU 2016-02 on January 1, 2019 and recognize operating lease liabilities with corresponding right of use (“ROU”) assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases with a term longer than 12 months. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes several changes meant to add, modify or remove specific disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The modifications are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption, permitted. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. | |
Huale Group Co. Limited [Member] | |||
Basis of Presentation | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $245,480 during the six months ended June 30, 2020. As of June 30, 2020, the Company had net current liability of $694,937 and total deficit of $364,075. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | ||
Method of Accounting | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. | ||
Use of Estimates | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. | ||
Business Combinations | Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. | ||
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. | ||
Accounts Receivables | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit losses is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit losses allowances. | ||
Inventories | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. | ||
Advances and Prepayments to Suppliers | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | ||
Leasehold Improvement and Equipment | Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. | ||
Impairment of Long-Lived Assets | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the six months ended June 30, 2020 and the year ended December 31, 2019. Accounting for the impairment of long-lived assets The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry, introduction of new technologies, or if the Company has inadequate working capital to utilize the long-lived assets to generate the adequate profits. Impairment is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. | ||
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis (December 31 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. In order to test goodwill for impairment, the Company first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. No impairment loss is recognized during the six months ended June 30, 2020. | ||
Statutory Reserves | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | ||
Leases | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. | ||
Value Added Tax ("VAT") | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | ||
Foreign Currency Translation | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302020 06302019 Year end RMB: US$ exchange rate 7.068231 6.87644 Annual average RMB: US$ exchange rate 7.032406 6.61464 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. | ||
Income Recognition | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | ||
Advertising | Advertising All advertising costs are expensed as incurred. | ||
Shipping and Handling | Shipping and handling All outbound shipping and handling costs are expensed as incurred. | ||
Research and Development | Research and development All research and development costs are expensed as incurred. | ||
Retirement Benefits | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. | ||
Income Taxes | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. | ||
Comprehensive Income | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income.” Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. | ||
Financial Instruments | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | ||
Commitments and Contingencies | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | ||
Recent Accounting Pronouncements | Recent accounting pronouncements In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company adopted this pronouncement on its consolidated financial statements as of and for the year ended December 31, 2019. In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this ASU on update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted this ASU on January 1, 2019. Adoption of this standard resulted in the recognition of right-of-use assets of $264,164 and operating lease liabilities of $268,604. As of December 31, 2019, the adoption of this standard did not have a material impact on the Company’s operating results or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Policies) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basis of Presentation | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of 185,750 during the six months ended June 30, 2021. As of June 30, 2021, the Company had net current liability of $1,517,991 and total deficit of $1,420,886. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $967,491 during the year ended December 31, 2020. As of December 31, 2020, the Company had net current liability of $1,217,646 and total deficit of $1,216,410. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | ||
Method of Accounting | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. | ||
Use of Estimates | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. | ||
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. | ||
Accounts Receivable | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit loss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances. | ||
Inventories | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. | ||
Advances and Prepayments to Suppliers | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of finished goods. Upon physical receipt and inspection of the finished goods from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | ||
Leasehold Improvement and Equipment | Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. | Plant and Equipment An item of plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of plant and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. | ||
Impairment of Long-Lived Assets | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of plant and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company recorded $235,202 write-off on leasehold improvement for the year ended December 31, 2020. The Company did not record any impairment losses on long-lived assets during the year ended December 31, 2019. | ||
Statutory Reserves | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | ||
Leases | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets Impairment loss of $161,274 was recognized during the year ended December 31, 2020. | ||
Foreign Currency Translation | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12312020 12302019 Year end RMB: US$ exchange rate 6.52765 6.96676 Annual average RMB: US$ exchange rate 6.99410 6.89955 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. | ||
Value Added Tax ("VAT") | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | ||
Income Recognition | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | ||
Advertising | Advertising All advertising costs are expensed as incurred. | Advertising All advertising costs are expensed as incurred. | ||
Shipping and Handling | Shipping and handling All outbound shipping and handling costs are expensed as incurred. | Shipping and handling All outbound shipping and handling costs are expensed as incurred. | ||
Research and Development | Research and development All research and development costs are expensed as incurred. | |||
Retirement Benefits | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. | ||
Income Taxes | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. | ||
Comprehensive Income | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. | ||
Financial Instruments | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | ||
Commitments and Contingencies | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | ||
Recent Accounting Pronouncements | Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted ASU 2016-02 on January 1, 2019 and recognize operating lease liabilities with corresponding right of use (“ROU”) assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases with a term longer than 12 months. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes several changes meant to add, modify or remove specific disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The modifications are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption, permitted. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Basis of Presentation | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $102,394 during the six months ended June 30, 2020. As of June 30, 2020, the Company had net current liability of $25,532 and total equity of $370,177. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $103,664 during the year ended December 31, 2019. As of December 31, 2019, the Company had net current liability of $383,985 and total deficit of $89,339. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the Chairman of the Board. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the Chairman of the Board indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | ||
Method of Accounting | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. The Company maintains its general ledger and journals with the accrual method accounting. | Method of accounting Management has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United States of America. the Company maintains its general ledger and journals with the accrual method accounting. | ||
Use of Estimates | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. | Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates | ||
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. | Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits to be cash equivalents. | ||
Accounts Receivable | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit losses is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit losses allowances. | Accounts receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off against allowances. | ||
Inventories | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. | Inventories Inventories consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. | ||
Advances and Prepayments to Suppliers | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | Advances and prepayments to suppliers The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | ||
Leasehold Improvement and Equipment | Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. | Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company’s typically applies a salvage value of 0%. The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. | ||
Impairment of Long-Lived Assets | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the six months ended June 30, 2020 and the year ended December 31, 2019. Accounting for the impairment of long-lived assets The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry, introduction of new technologies, or if the Company has inadequate working capital to utilize the long-lived assets to generate the adequate profits. Impairment is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the year ended December 31, 2019 and 2018. Accounting for the impairment of long-lived assets The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry, introduction of new technologies, or if the Company has inadequate working capital to utilize the long-lived assets to generate the adequate profits. Impairment is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. | ||
Statutory Reserves | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | ||
Leases | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. | Leases Leases are classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. | ||
Foreign Currency Translation | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06302020 06302019 Year end RMB: US$ exchange rate 7.068231 6.87644 Annual average RMB: US$ exchange rate 7.032406 6.61464 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12312019 12312018 Year end RMB: US$ exchange rate 6.96676 6.87644 Annual average RMB: US$ exchange rate 6.89955 6.61464 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. | ||
Value Added Tax ("VAT") | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, the Company is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, the Company became general taxpayer and subject to VAT rates of 13%, 9% and 6%. | Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company’s financial statements. From May 2017 to August 2018, the Company is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, the Company became general taxpayer and subject to VAT rates of 13%, 9% and 6%. | ||
Income Recognition | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | Income recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company is in the business of selling high-quality audio and video products. Trade receipts that are received in advance are initially recorded as deferred revenue. Revenue is recognized when goods are delivered and acknowledged by customers. Revenue is recognized when a customer receives the goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | ||
Advertising | Advertising All advertising costs are expensed as incurred. | Advertising All advertising costs are expensed as incurred. | ||
Shipping and Handling | Shipping and handling All outbound shipping and handling costs are expensed as incurred. | Shipping and handling All outbound shipping and handling costs are expensed as incurred. | ||
Research and Development | Research and development All research and development costs are expensed as incurred. | Research and development All research and development costs are expensed as incurred. | ||
Retirement Benefits | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. | Retirement benefits Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. | ||
Income Taxes | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. | Income taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. The Company accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. | ||
Comprehensive Income | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. | Comprehensive income The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. | ||
Financial Instruments | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | Financial instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | ||
Commitments and Contingencies | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | ||
Recent Accounting Pronouncements | Recent accounting pronouncements In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company adopted this pronouncement on its consolidated financial statements as of and for the year ended December 31, 2019. In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this ASU on update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted this ASU on January 1, 2019. Adoption of this standard resulted in the recognition of right-of-use assets of $264,164 and operating lease liabilities of $268,604. As of December 31, 2019, the adoption of this standard did not have a material impact on the Company’s operating results or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The adoption does not have a significant impact on the Company’s financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. | Recent accounting pronouncements In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company adopted this pronouncement on its consolidated financial statements as of and for the year ended December 31, 2019. In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this ASU on update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity that is a SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company adopted this ASU on January 1, 2019. Adoption of this standard resulted in the recognition of right-of-use assets of $264,164 and operating lease liabilities of $268,604. As of December 31, 2019, the adoption of this standard did not have a material impact on the Company’s operating results or cash flows. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. |
Organization and Principal Ac_4
Organization and Principal Activities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Schedule of Company's Subsidiaries | As of June 30, 2021, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media | As of December 31, 2019, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of acquisition Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (Hong Kong) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited(“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Schedule of Estimated Useful Lives of Plant and Equipment | The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months | The estimated useful lives of the plant and equipment are as follows: Computer 36 months Furniture and fittings 36 months Office equipment 36 months Leasehold improvement Shorter of lease term or estimated useful life |
Schedule of Foreign Currency Translation | 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 | December 31, 2019 December 31, 2018 Year end RMB: US$ exchange rate 6.96676 6.87644 Annual average RMB: US$ exchange rate 6.89955 6.61464 |
Prepaid Expenses and Advance _2
Prepaid Expenses and Advance Payment to Suppliers (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Prepaid Expenses And Advance Payment To Suppliers | ||
Schedule of Prepaid Expenses, Taxes and Other Current Assets | June 30, 2021 December 31, $ $ Prepaid expenses 42,138 76,597 Advance payments to Suppliers 196,101 122,616 238,239 199,213 | 2019 2018 Advance payment to suppliers 96,717 - Prepaid expenses - 12,000 96,717 12,000 |
Other Receivables (Tables)
Other Receivables (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Schedule of Other Receivables | June 30, December 31, $ $ Value Added Tax Receivables 17,797 29,477 Deposit 65,779 65,046 Others 12,394 1,730 95,970 96,253 | 2019 2018 Security deposit 2,871 - Value Added Tax receivables 60,946 - Deposit 56,251 - Others 14,044 - $ 134,112 $ - |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of Plant and Equipment | Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2020 (Audited) 776 1,256 1,219 - 3,251 Additions during the year - - - - - Disposals during the year - - - - - Effects of currency translation 9 14 14 - 37 At June 30, 2021 (Unaudited) 785 1,270 1,233 - 3,288 Accumulated depreciation At December 31,2020 (Audited) 227 754 1,034 - 2,015 Depreciation during the year - 158 114 272 Disposals during the year - - - - - Effects of currency translation 9 9 19 37 At June 30, 2021 (Unaudited) 236 921 1,167 - 2,324 Net book value At December 31, 2020 (Audited) 549 502 185 - 1,236 At June 30, 2021 (Unaudited) 549 349 66 - 964 | Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At January 1 and December 31,2018 - - - - - Additions arising from business combinations - 660 1,157 616,734 618,551 Additions during the year 368 - - 3,832 4,200 Effects of currency translation - (9 ) (15 ) (8,059 ) (8,083 ) At December 31, 2019 368 651 1,142 612,507 614,668 Accumulated depreciation At January 1 and December 31,2018 - - - - - Additions arising from business combinations - 270 403 178,022 178,695 Depreciation during the year - 109 193 71,434 71,736 Effects of currency translation - (5 ) (8 ) (3,234 ) (3,247 ) At December 31, 2019 - 374 588 246,222 247,184 Net book value At December 31, 2018 - - - - - At December 31, 2019 368 277 554 366,285 367,484 |
Right of Use Assets (Tables)
Right of Use Assets (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Right Of Use Assets | ||
Schedule of Right of Use Assets | $ Cost At December 31,2020 (Audited) - Additions during the year 302,745 Write-off during the year - Effects of currency translation - At June 30, 2021 (Unaudited) 302,745 Accumulated depreciation At December 31,2020 (Audited) - Depreciation during the year 25,035 Write-off during the year - Effects of currency translation 194 At June 30, 2021 (Unaudited) 25,229 Net book value At December 31, 2020 (Audited) - At June 30, 2021 (Unaudited) 277,516 | $ Cost At December 31,2019 (Audited) 366,421 Additions during the year - Write-off during the year (366,421 ) Effects of currency translation - At December 31, 2020 (Audited) - Accumulated depreciation At December 31,2019 (Audited) 102,257 Depreciation during the year 102,890 Write-off during the year (205,147 ) Effects of currency translation - At December 31, 2020 (Audited) - Net book value At December 31, 2019 (Audited) 264,164 At December 31, 2020 (Audited) - |
Other Payables and Accruals (Ta
Other Payables and Accruals (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Schedule of Other Payables and Accruals | June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Accrued payroll and welfare payable 1,790 12,882 VAT and other taxes payable 208 6,380 Others (a) 575,226 501,678 577,224 520,940 (a) Others primarily consist of rental payable. | December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Accrued payroll and welfare payable 12,882 10,820 VAT and other taxes payable 6,380 557 Others (a) 501,678 284,241 520,940 295,618 (a) Others primarily consist of rental payable. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Schedule of Balances Due to and Due from Related Parties | At June 30, 2021 and December 31, 2020, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2021 December 31, 2020 Relationship Huang Xiansheng 20,140 19,915 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd - 44,581 Company owned by President of the Company 20,140 64,496 At June 30, 2021 and December 31, 2020, the Company owed funds to the following related parties: June 30, 2021 December 31, 2020 Relationship Shenzhen Yeller Investment & Development Co., Ltd 9,672 - Company owned by President of the Company Huang Yusheng 544,142 374,553 President of the Company 553,814 374,553 | At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. December, 2020 December 31, 2019 Relationship Huang Xiansheng.5in 19,915 25,837 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd 44,581 54,433 Company owned by President of the Company 64,496 80,270 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: December, 2020 December 31, 2019 Relationship Huang Zhicheng - 57,423 Former shareholder of the Company Huang Yusheng 374,553 137,791 President of the Company 374,553 195,214 |
Schedule of Related Party Transactions | June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd 4,458 9,975 Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd 28,466 70,703 Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd 26,750 7,592 Sales of finished goods to Shenzhen Yeller Investment & Development Co., Ltd - 7,237 | These advances were unsecured, non-interest bearing and due on demand. (b) Transactions December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Purchases of goods from Shenzhen Yeller 9,975 232,238 Installation service charged by Shenzhen Yeller 70,703 45,351 Rental fee charged to Shenzhen Yeller 7,592 285,561 Sales of finished goods to Shenzhen Yeller 7,237 - |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Schedule of Income Tax Expense (Benefits) | Income tax expense (benefits) June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) $ $ Loss before tax (185,750 ) (286,823 ) Tax credit calculated at statutory tax rate (46,438 ) (71,706 ) Effect of different tax rates in other countries - 112 Others 46,438 71,594 - - | Income tax expense (benefits) December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Loss before tax (967,491 ) (284,655 ) Tax credit calculated at statutory tax rate (241,873 ) (71,164 ) Effect of different tax rates in other countries 36 118 Others 241,837 71,046 - - |
Leases (Tables)
Leases (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Schedule of Future Minimum Payments of Operating Leases | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2021 As of December 31, 2020 (Audited) (Audited) $ $ Within 1 year 259,195 183,990 After 1 year but within 5 years 188,729 - Total lease payments 447,924 183,990 Less: imputed interest (17,607 ) (6,349 ) Total lease obligations 430,317 177,641 Less: current obligations 248,942 (177,641 ) Long-term lease obligations 181,375 - | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of December 31, 2020 As of December 31, 2019 (Audited) (Audited) $ $ Within 1 year 183,990 113,291 After 1 year but within 5 years - 171,630 Total lease payments 183,990 284,921 Less: imputed interest (6,349 ) (16,318 ) Total lease obligations 177,641 268,603 Less: current obligations (177,641 ) (102,159 ) Long-term lease obligations - 166,444 |
Organization and Principal Ac_5
Organization and Principal Activities (Tables) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Company's Subsidiaries | As of June 30, 2021, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media | As of December 31, 2019, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of acquisition Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Group Co., Ltd (“HGL”) September 28, 2016 April 28, 2020 Seychelles 100 % Investment holding Huale Holding Co., Ltd (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (Hong Kong) Investment Co., Limited(“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited(“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited(“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media | |
Huale Group Co. Limited [Member] | |||
Schedule of Company's Subsidiaries | As of December 31, 2019, the Company’s subsidiaries are as follows: Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huale Holding Co., Limited (“HHC”) May 15, 2017 N/A Seychelles 100 % Investment holding Huale (HK) Investment Co., Limited (“HHK”) September 16, 2016 May 29, 2018 Hong Kong 100 % Investment holding Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited (“QCM”) March 27, 2017 N/A China 100 % Investment holding Shenzhen Yeller Audio & Video Technology Co., Limited (“Shenzhen Yeller”) May 5, 2017 August 2, 2019 China 80 % Selling audio and video equipment, smart home and cultural media |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Tables) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Estimated Useful Lives of Plant and Equipment | The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months | The estimated useful lives of the plant and equipment are as follows: Computer 36 months Furniture and fittings 36 months Office equipment 36 months Leasehold improvement Shorter of lease term or estimated useful life | |
Schedule of Foreign Currency Translation | 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 | December 31, 2019 December 31, 2018 Year end RMB: US$ exchange rate 6.96676 6.87644 Annual average RMB: US$ exchange rate 6.89955 6.61464 | |
Huale Group Co. Limited [Member] | |||
Schedule of Estimated Useful Lives of Plant and Equipment | The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months | ||
Schedule of Foreign Currency Translation | 06302020 06302019 Year end RMB: US$ exchange rate 7.068231 6.87644 Annual average RMB: US$ exchange rate 7.032406 6.61464 |
Other Receivables (Tables) (Hua
Other Receivables (Tables) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Other Receivables | June 30, December 31, $ $ Value Added Tax Receivables 17,797 29,477 Deposit 65,779 65,046 Others 12,394 1,730 95,970 96,253 | 2019 2018 Security deposit 2,871 - Value Added Tax receivables 60,946 - Deposit 56,251 - Others 14,044 - $ 134,112 $ - | |
Huale Group Co. Limited [Member] | |||
Schedule of Other Receivables | June 30, 2020 (Unaudited) December 31, 2019 (Audited) $ $ Security deposit - 2,871 Value Added Tax Receivables 65,682 60,946 Deposit 60,071 56,251 Others 34,152 14,044 159,905 134,112 |
Plant and Equipment (Tables) (H
Plant and Equipment (Tables) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Plant and Equipment | Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2020 (Audited) 776 1,256 1,219 - 3,251 Additions during the year - - - - - Disposals during the year - - - - - Effects of currency translation 9 14 14 - 37 At June 30, 2021 (Unaudited) 785 1,270 1,233 - 3,288 Accumulated depreciation At December 31,2020 (Audited) 227 754 1,034 - 2,015 Depreciation during the year - 158 114 272 Disposals during the year - - - - - Effects of currency translation 9 9 19 37 At June 30, 2021 (Unaudited) 236 921 1,167 - 2,324 Net book value At December 31, 2020 (Audited) 549 502 185 - 1,236 At June 30, 2021 (Unaudited) 549 349 66 - 964 | Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At January 1 and December 31,2018 - - - - - Additions arising from business combinations - 660 1,157 616,734 618,551 Additions during the year 368 - - 3,832 4,200 Effects of currency translation - (9 ) (15 ) (8,059 ) (8,083 ) At December 31, 2019 368 651 1,142 612,507 614,668 Accumulated depreciation At January 1 and December 31,2018 - - - - - Additions arising from business combinations - 270 403 178,022 178,695 Depreciation during the year - 109 193 71,434 71,736 Effects of currency translation - (5 ) (8 ) (3,234 ) (3,247 ) At December 31, 2019 - 374 588 246,222 247,184 Net book value At December 31, 2018 - - - - - At December 31, 2019 368 277 554 366,285 367,484 | |
Huale Group Co. Limited [Member] | |||
Schedule of Plant and Equipment | Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2019 368 651 1,142 612,507 614,668 Additions during the year - 518 - 5,659 6,177 Effects of currency translation (5 ) (9 ) (16 ) (8,794 ) (8,824 ) At June 30, 2020 363 1,160 1,126 609,372 612,021 Accumulated depreciation At December 31,2019 - 374 588 246,222 247,184 Depreciation during the year - 107 188 69,950 70,245 Effects of currency translation - (5 ) (8 ) (3,535 ) (3,548 ) At June 30, 2020 - 476 768 312,637 313,881 Net book value At December 31, 2019 368 277 554 366,285 367,484 At June 30, 2020 363 684 358 296,736 298,140 |
Other Payables and Accruals (_2
Other Payables and Accruals (Tables) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Other Payables and Accruals | June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Accrued payroll and welfare payable 1,790 12,882 VAT and other taxes payable 208 6,380 Others (a) 575,226 501,678 577,224 520,940 (a) Others primarily consist of rental payable. | December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Accrued payroll and welfare payable 12,882 10,820 VAT and other taxes payable 6,380 557 Others (a) 501,678 284,241 520,940 295,618 (a) Others primarily consist of rental payable. | |
Huale Group Co. Limited [Member] | |||
Schedule of Other Payables and Accruals | June 30, 2020 December 31, 2019 (Unaudited) (Audited) $ $ Accrued payroll and welfare payable 10,383 10,820 VAT and other taxes payable 21 557 Others (a) 361,990 284,241 372,394 295,618 |
Related Party Transactions (T_2
Related Party Transactions (Tables) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Balances Due to and Due from Related Parties | At June 30, 2021 and December 31, 2020, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2021 December 31, 2020 Relationship Huang Xiansheng 20,140 19,915 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd - 44,581 Company owned by President of the Company 20,140 64,496 At June 30, 2021 and December 31, 2020, the Company owed funds to the following related parties: June 30, 2021 December 31, 2020 Relationship Shenzhen Yeller Investment & Development Co., Ltd 9,672 - Company owned by President of the Company Huang Yusheng 544,142 374,553 President of the Company 553,814 374,553 | At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. December, 2020 December 31, 2019 Relationship Huang Xiansheng.5in 19,915 25,837 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd 44,581 54,433 Company owned by President of the Company 64,496 80,270 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: December, 2020 December 31, 2019 Relationship Huang Zhicheng - 57,423 Former shareholder of the Company Huang Yusheng 374,553 137,791 President of the Company 374,553 195,214 | |
Schedule of Related Party Transactions | June 30, 2021 December 31, 2020 (Unaudited) (Audited) $ $ Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd 4,458 9,975 Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd 28,466 70,703 Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd 26,750 7,592 Sales of finished goods to Shenzhen Yeller Investment & Development Co., Ltd - 7,237 | These advances were unsecured, non-interest bearing and due on demand. (b) Transactions December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Purchases of goods from Shenzhen Yeller 9,975 232,238 Installation service charged by Shenzhen Yeller 70,703 45,351 Rental fee charged to Shenzhen Yeller 7,592 285,561 Sales of finished goods to Shenzhen Yeller 7,237 - | |
Huale Group Co. Limited [Member] | |||
Schedule of Balances Due to and Due from Related Parties | At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2020 December 31, 2019 Relationship Huang Xiansheng - 25,837 Minority shareholder of Shenzhen Yeller Shenzhen Huashengchuang Investment Development Co., Ltd 282,956 - Company owned by President of the Company Huale Acoustics Limited 123,126 81,784 Ultimate Holding Company Shenzhen Yeller Investment & Development Co., Ltd 39,503 54,433 Company owned by President of the Company 445,585 162,054 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: June 30, 2020 December 31, 2019 Relationship Huang Yusheng 791,283 105,942 Sole director | ||
Schedule of Related Party Transactions | June 30, 2020 December 31, 2019 (Unaudited) (Audited) $ $ Purchases of goods from Shenzhen Yeller 13,553 232,238 Installation service charged by Shenzhen Yeller 10,283 45,351 Rental fee charged to Shenzhen Yeller - 285,561 |
Income Taxes (Tables) (Huale Gr
Income Taxes (Tables) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Income Tax Expense (Benefits) | Income tax expense (benefits) June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) $ $ Loss before tax (185,750 ) (286,823 ) Tax credit calculated at statutory tax rate (46,438 ) (71,706 ) Effect of different tax rates in other countries - 112 Others 46,438 71,594 - - | Income tax expense (benefits) December 31, 2020 December 31, 2019 (Audited) (Audited) $ $ Loss before tax (967,491 ) (284,655 ) Tax credit calculated at statutory tax rate (241,873 ) (71,164 ) Effect of different tax rates in other countries 36 118 Others 241,837 71,046 - - | |
Huale Group Co. Limited [Member] | |||
Schedule of Income Tax Expense (Benefits) | Income tax expense (benefits) June 30, 2020 June 30, 2019 (Unaudited) (Unaudited) $ $ Loss before tax (245,480 ) (28,265 ) Tax credit calculated at statutory tax rate (61,370 ) (7,066 ) Effect of different tax rates in other countries 56 - Others 61,314 7,066 - - |
Leases (Tables) (Huale Group Co
Leases (Tables) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Future Minimum Payments of Operating Leases | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2021 As of December 31, 2020 (Audited) (Audited) $ $ Within 1 year 259,195 183,990 After 1 year but within 5 years 188,729 - Total lease payments 447,924 183,990 Less: imputed interest (17,607 ) (6,349 ) Total lease obligations 430,317 177,641 Less: current obligations 248,942 (177,641 ) Long-term lease obligations 181,375 - | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of December 31, 2020 As of December 31, 2019 (Audited) (Audited) $ $ Within 1 year 183,990 113,291 After 1 year but within 5 years - 171,630 Total lease payments 183,990 284,921 Less: imputed interest (6,349 ) (16,318 ) Total lease obligations 177,641 268,603 Less: current obligations (177,641 ) (102,159 ) Long-term lease obligations - 166,444 | |
Huale Group Co. Limited [Member] | |||
Schedule of Future Minimum Payments of Operating Leases | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2020 As of December 31, 2019 (Unaudited) (Audited) $ $ Within 1 year 113,291 113,291 After 1 year but within 5 years 122,732 171,630 Total lease payments 236,023 284,921 Less: imputed interest (21,076 ) (16,318 ) Total lease obligations 214,947 268,603 Less: current obligations (102,902 ) (102,159 ) Long-term lease obligations 112,045 166,444 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Tables) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Estimated Useful Lives of Plant and Equipment | The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months | The estimated useful lives of the plant and equipment are as follows: Computer 36 months Furniture and fittings 36 months Office equipment 36 months Leasehold improvement Shorter of lease term or estimated useful life | ||
Schedule of Foreign Currency Translation | 06302021 12312020 06302020 Year end RMB: US$ exchange rate 6.45488 6.52765 7.06823 Annual average RMB: US$ exchange rate 6.50471 6.99410 7.03241 | December 31, 2019 December 31, 2018 Year end RMB: US$ exchange rate 6.96676 6.87644 Annual average RMB: US$ exchange rate 6.89955 6.61464 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Schedule of Estimated Useful Lives of Plant and Equipment | The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months | The estimated useful lives of the plant and equipment are as follows: Furniture and fittings 3 years Office equipment 3 years Leasehold improvement 42-52 months | ||
Schedule of Foreign Currency Translation | 06302020 06302019 Year end RMB: US$ exchange rate 7.068231 6.87644 Annual average RMB: US$ exchange rate 7.032406 6.61464 | 12312019 12312018 Year end RMB: US$ exchange rate 6.96676 6.87644 Annual average RMB: US$ exchange rate 6.89955 6.61464 |
Other Receivables (Tables) (She
Other Receivables (Tables) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Other Receivables | June 30, December 31, $ $ Value Added Tax Receivables 17,797 29,477 Deposit 65,779 65,046 Others 12,394 1,730 95,970 96,253 | 2019 2018 Security deposit 2,871 - Value Added Tax receivables 60,946 - Deposit 56,251 - Others 14,044 - $ 134,112 $ - | |
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||
Schedule of Other Receivables | December 31, 2019 December 31, 2018 Security deposit 2,871 2,908 Value Added Tax Receivables 60,946 54,031 Deposit 56,251 61,747 Others 14,044 - $ 134,112 $ 118,686 |
Plant and Equipment (Tables) (S
Plant and Equipment (Tables) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Plant and Equipment | Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At December 31,2020 (Audited) 776 1,256 1,219 - 3,251 Additions during the year - - - - - Disposals during the year - - - - - Effects of currency translation 9 14 14 - 37 At June 30, 2021 (Unaudited) 785 1,270 1,233 - 3,288 Accumulated depreciation At December 31,2020 (Audited) 227 754 1,034 - 2,015 Depreciation during the year - 158 114 272 Disposals during the year - - - - - Effects of currency translation 9 9 19 37 At June 30, 2021 (Unaudited) 236 921 1,167 - 2,324 Net book value At December 31, 2020 (Audited) 549 502 185 - 1,236 At June 30, 2021 (Unaudited) 549 349 66 - 964 | Computer Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ $ Cost At January 1 and December 31,2018 - - - - - Additions arising from business combinations - 660 1,157 616,734 618,551 Additions during the year 368 - - 3,832 4,200 Effects of currency translation - (9 ) (15 ) (8,059 ) (8,083 ) At December 31, 2019 368 651 1,142 612,507 614,668 Accumulated depreciation At January 1 and December 31,2018 - - - - - Additions arising from business combinations - 270 403 178,022 178,695 Depreciation during the year - 109 193 71,434 71,736 Effects of currency translation - (5 ) (8 ) (3,234 ) (3,247 ) At December 31, 2019 - 374 588 246,222 247,184 Net book value At December 31, 2018 - - - - - At December 31, 2019 368 277 554 366,285 367,484 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Schedule of Plant and Equipment | Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ Cost At December 31,2019 651 1,142 612,507 614,300 Additions during the year 518 - 5,659 6,177 Effects of currency translation (9 ) (16 ) (8,794 ) (8,819 ) At June 30, 2020 1,160 1,126 609,372 611,658 Accumulated depreciation At December 31,2019 374 588 246,222 247,184 Depreciation during the year 107 188 69,950 70,245 Effects of currency translation (5 ) (8 ) (3,535 ) (3,548 ) At June 30, 2020 476 768 312,637 313,881 Net book value At December 31, 2019 277 554 366,285 367,116 At June 30, 2020 684 358 296,735 297,777 | Furniture and fittings Office equipment Leasehold improvement Total $ $ $ $ Cost At December 31,2018 660 1,157 616,734 618,551 Additions during the year - - 3,832 3,832 Effects of currency translation (9 ) (15 ) (8,059 ) (8,083 ) At December 31, 2019 651 1,142 612,507 614,300 Accumulated depreciation At December 31,2018 159 210 106,491 106,860 Depreciation during the year 220 386 142,965 143,571 Effects of currency translation (5 ) (8 ) (3,234 ) (3,247 ) At December 31, 2019 374 588 246,222 247,184 Net book value At December 31, 2018 501 947 510,243 511,691 At December 31, 2019 277 554 366,285 367,116 |
Related Party Transactions (T_3
Related Party Transactions (Tables) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Balances Due to and Due from Related Parties | At June 30, 2021 and December 31, 2020, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2021 December 31, 2020 Relationship Huang Xiansheng 20,140 19,915 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd - 44,581 Company owned by President of the Company 20,140 64,496 At June 30, 2021 and December 31, 2020, the Company owed funds to the following related parties: June 30, 2021 December 31, 2020 Relationship Shenzhen Yeller Investment & Development Co., Ltd 9,672 - Company owned by President of the Company Huang Yusheng 544,142 374,553 President of the Company 553,814 374,553 | At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. December, 2020 December 31, 2019 Relationship Huang Xiansheng.5in 19,915 25,837 Minority shareholder of Shenzhen Yeller Shenzhen Yeller Investment & Development Co., Ltd 44,581 54,433 Company owned by President of the Company 64,496 80,270 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: December, 2020 December 31, 2019 Relationship Huang Zhicheng - 57,423 Former shareholder of the Company Huang Yusheng 374,553 137,791 President of the Company 374,553 195,214 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Schedule of Balances Due to and Due from Related Parties | At June 30, 2020 and December 31, 2019, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. June 30, 2020 December 31, 2019 Relationship Huang Xiansheng - 25,837 Shareholder Huang Yusheng - 86,123 President of the Company Shenzhen Huashengchuang Investment Development Co., Ltd 424,434 - Company owned by President of the Company Shenzhen Yeller Investment & Development Co., Ltd 53,651 54,433 Company owned by President of the Company 478,085 166,393 At June 30, 2020 and December 31, 2019, the Company owed funds to the following related parties: June 30, 2020 December 31, 2019 Relationship Huang Yusheng 15,367 - President of the Company 15,367 - | At December 31, 2019 and 2018, the Company lent funds to the following related parties. These loans were unsecured, non-interest bearing and repayable on demand. December 31, 2019 December 31, 2018 Relationship Huang Xiansheng 25,837 - Shareholder Huang Yusheng 86,123 - President of the Company Shenzhen Yeller Investment & Development Co., Ltd 54,433 - Company owned by President of the Company 166,393 - At December 31, 2019 and 2018, the Company owed funds to the following related parties; except for the balance owed to Shenzhen Yeller Investment & Development Co., Ltd, these advances were unsecured and non-interest bearing and due on demand: December 31, 2019 December 31, 2018 Relationship Shenzhen Yeller Investment & Development Co., Ltd - 149,492 Company owned by President of the Company Huang Xiansheng - 91,617 Shareholder Huang Yusheng - 219,590 President of the Company - 460,699 |
Other Payables (Tables) (Shenzh
Other Payables (Tables) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 12 Months Ended |
Dec. 31, 2019 | |
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |
Schedule of Other Payables | December 31, 2019 December 31, 2018 Rental payable 270,238 160,496 Management fee for rental property 1,538 - Others 3,391 43,700 $ 275,167 $ 204,196 |
Lease Commitments (Tables) (She
Lease Commitments (Tables) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Future Minimum Payments of Operating Leases | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2021 As of December 31, 2020 (Audited) (Audited) $ $ Within 1 year 259,195 183,990 After 1 year but within 5 years 188,729 - Total lease payments 447,924 183,990 Less: imputed interest (17,607 ) (6,349 ) Total lease obligations 430,317 177,641 Less: current obligations 248,942 (177,641 ) Long-term lease obligations 181,375 - | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of December 31, 2020 As of December 31, 2019 (Audited) (Audited) $ $ Within 1 year 183,990 113,291 After 1 year but within 5 years - 171,630 Total lease payments 183,990 284,921 Less: imputed interest (6,349 ) (16,318 ) Total lease obligations 177,641 268,603 Less: current obligations (177,641 ) (102,159 ) Long-term lease obligations - 166,444 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | ||||
Schedule of Future Minimum Payments of Operating Leases | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of June 30, 2020 As of December 31, 2019 (Unaudited) (Audited) $ $ Within 1 year 113,291 113,291 After 1 year but within 5 years 122,732 171,630 Total lease payments 236,023 284,921 Less: imputed interest (21,076 ) (16,318 ) Total lease obligations 214,947 268,603 Less: current obligations (102,902 ) (102,159 ) Long-term lease obligations 112,045 166,444 | The Company’s future minimum payments under long-term non-cancellable operating leases are as follows: As of December 31, 2019 $ Within 1 year 113,291 After 1 year but within 5 years 171,630 Total lease payments 284,921 Less: imputed interest (16,318 ) Total lease obligations 268,603 Less: current obligations (102,159 ) Long-term lease obligations 166,444 |
Organization and Principal Ac_6
Organization and Principal Activities (Details Narrative) - Share Exchange Agreement [Member] - shares | Aug. 02, 2019 | Apr. 28, 2020 |
Shenzhen Yeller Video & Technology Co Shareholders [Member] | ||
Purchase of shares, description | QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.'s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). | |
Huale Group Co., Limited [Member] | ||
Common stock, shares authorized | 32,625,000 | |
Huale Group Co., Limited [Member] | Shareholders [Member] | ||
Ownership percentage | 90.00% | |
Huale Group Co., Limited [Member] | Former Shareholders [Member] | ||
Ownership percentage | 10.00% |
Organization and Principal Ac_7
Organization and Principal Activities (Details Narrative) (10 K) - Share Exchange Agreement [Member] - shares | Aug. 02, 2019 | Apr. 28, 2020 |
Shenzhen Yeller Video & Technology Co Shareholders [Member] | ||
Purchase of shares, description | QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.'s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). | |
Huale Group Co., Limited [Member] | ||
Common stock, shares authorized | 32,625,000 | |
Huale Group Co., Limited [Member] | Shareholders [Member] | ||
Ownership percentage | 90.00% | |
Huale Group Co., Limited [Member] | Former Shareholders [Member] | ||
Ownership percentage | 10.00% |
Organization and Principal Ac_8
Organization and Principal Activities - Schedule of Company's Subsidiaries (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Huale Group Co., Ltd ("HGL") [Member] | |||
Date of incorporation | Sep. 28, 2016 | Sep. 28, 2016 | May 15, 2017 |
Date of acquisition | Apr. 28, 2020 | Apr. 28, 2020 | |
Place of incorporation | Seychelles | Seychelles | Seychelles |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Huale Holding Co., Ltd ("HHC") [Member] | |||
Date of incorporation | May 15, 2017 | May 15, 2017 | |
Place of incorporation | Seychelles | Seychelles | |
Percentage of legal ownership by the Company | 100.00% | 100.00% | |
Principal activities | Investment holding | Investment holding | |
Huale (Hong Kong) Investment Co., Limited ("HHK") [Member] | |||
Date of incorporation | Sep. 16, 2016 | Sep. 16, 2016 | Sep. 16, 2016 |
Date of acquisition | May 29, 2018 | May 29, 2018 | May 29, 2018 |
Place of incorporation | Hong Kong | Hong Kong | Hong Kong |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited ("QCM") [Member] | |||
Date of incorporation | Mar. 27, 2017 | Mar. 27, 2017 | Mar. 27, 2017 |
Place of incorporation | China | China | China |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||
Date of incorporation | May 5, 2017 | May 5, 2017 | May 5, 2017 |
Date of acquisition | Aug. 2, 2019 | Aug. 2, 2019 | Aug. 2, 2019 |
Place of incorporation | China | China | China |
Percentage of legal ownership by the Company | 80.00% | 80.00% | 80.00% |
Principal activities | Selling audio and video equipment, smart home and cultural media | Selling audio and video equipment, smart home and cultural media | Selling audio and video equipment, smart home and cultural media |
Organization and Principal Ac_9
Organization and Principal Activities - Schedule of Company's Subsidiaries (Details) (10 K) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Huale Group Co., Ltd ("HGL") [Member] | |||
Date of incorporation | Sep. 28, 2016 | Sep. 28, 2016 | May 15, 2017 |
Date of acquisition | Apr. 28, 2020 | Apr. 28, 2020 | |
Place of incorporation | Seychelles | Seychelles | Seychelles |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Huale Holding Co., Ltd ("HHC") [Member] | |||
Date of incorporation | May 15, 2017 | May 15, 2017 | |
Place of incorporation | Seychelles | Seychelles | |
Percentage of legal ownership by the Company | 100.00% | 100.00% | |
Principal activities | Investment holding | Investment holding | |
Huale (Hong Kong) Investment Co., Limited ("HHK") [Member] | |||
Date of incorporation | Sep. 16, 2016 | Sep. 16, 2016 | Sep. 16, 2016 |
Date of acquisition | May 29, 2018 | May 29, 2018 | May 29, 2018 |
Place of incorporation | Hong Kong | Hong Kong | Hong Kong |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited ("QCM") [Member] | |||
Date of incorporation | Mar. 27, 2017 | Mar. 27, 2017 | Mar. 27, 2017 |
Place of incorporation | China | China | China |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||
Date of incorporation | May 5, 2017 | May 5, 2017 | May 5, 2017 |
Date of acquisition | Aug. 2, 2019 | Aug. 2, 2019 | Aug. 2, 2019 |
Place of incorporation | China | China | China |
Percentage of legal ownership by the Company | 80.00% | 80.00% | 80.00% |
Principal activities | Selling audio and video equipment, smart home and cultural media | Selling audio and video equipment, smart home and cultural media | Selling audio and video equipment, smart home and cultural media |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 16 Months Ended | ||||
Sep. 30, 2018 | Mar. 31, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Dec. 31, 2018 | |
Net loss | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) | ||||
Net current liability | 1,517,991 | 1,217,646 | ||||||
Total (deficit) equity | $ (1,420,886) | $ (576,475) | $ (1,216,410) | $ (298,447) | $ 463 | |||
Statutory reserves, description | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | ||||||
Operating lease description | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | ||||||
Lessee operating lease term | 12 months | 12 months | ||||||
Impairment loss | $ 161,274 | |||||||
Value added tax rate | 6.00% | 6.00% | ||||||
Value addet tax, description | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | ||||||
Shenzhen Yeller [Member] | ||||||||
Value added tax rate | 13.00% | 3.00% | ||||||
Shenzhen Yeller [Member] | Minimum [Member] | ||||||||
Value added tax rate | 9.00% | |||||||
Shenzhen Yeller [Member] | Maximum [Member] | ||||||||
Value added tax rate | 6.00% | |||||||
QCM Small-Scale Taxpayer [Member] | ||||||||
Value added tax rate | 3.00% | |||||||
Salvage Value [Member] | ||||||||
Salvage percentage | 0.00% | 0.00% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Details Narrative) (10 K) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 16 Months Ended | ||||
Sep. 30, 2018 | Mar. 31, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Dec. 31, 2018 | |
Net loss | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) | ||||
Net current liability | 1,517,991 | 1,217,646 | ||||||
Total (deficit) equity | (1,420,886) | (576,475) | (1,216,410) | (298,447) | $ 463 | |||
Impairment of long-lived assets | 235,202 | |||||||
Goodwill impairment loss | $ 49,564 | |||||||
Statutory reserves, description | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | ||||||
Operating lease description | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | ||||||
Lessee operating lease term | 12 months | 12 months | ||||||
Impairment loss | $ 161,274 | |||||||
Value added tax rate | 6.00% | 6.00% | ||||||
Value addet tax, description | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | ||||||
Shenzhen Yeller [Member] | ||||||||
Value added tax rate | 13.00% | 3.00% | ||||||
Shenzhen Yeller [Member] | Minimum [Member] | ||||||||
Value added tax rate | 9.00% | |||||||
Shenzhen Yeller [Member] | Maximum [Member] | ||||||||
Value added tax rate | 6.00% | |||||||
QCM Small-Scale Taxpayer [Member] | ||||||||
Value added tax rate | 3.00% | |||||||
Salvage Value [Member] | ||||||||
Salvage percentage | 0.00% | 0.00% |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Plant and Equipment (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Furniture and Fittings [Member] | ||
Plant and equipment, estimated useful lives | 3 years | 3 years |
Office Equipment [Member] | ||
Plant and equipment, estimated useful lives | 3 years | 3 years |
Leasehold Improvement [Member] | Minimum [Member] | ||
Plant and equipment, estimated useful lives | 42 months | 42 months |
Leasehold Improvement [Member] | Maximum [Member] | ||
Plant and equipment, estimated useful lives | 52 months | 52 months |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Plant and Equipment (Details) (10-K) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Furniture and Fittings [Member] | ||
Plant and equipment, estimated useful lives | 3 years | 3 years |
Office Equipment [Member] | ||
Plant and equipment, estimated useful lives | 3 years | 3 years |
Leasehold Improvement [Member] | Minimum [Member] | ||
Plant and equipment, estimated useful lives | 42 months | 42 months |
Leasehold Improvement [Member] | Maximum [Member] | ||
Plant and equipment, estimated useful lives | 52 months | 52 months |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Schedule of Foreign Currency Translation (Details) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Year End RMB: US$ Exchange Rate [Member] | ||||
Foreign exchange rate | 6.45488 | 6.52765 | 7.068231 | 6.96676 |
Annual Average RMB: US$ Exchange Rate [Member] | ||||
Foreign exchange rate | 6.50471 | 6.99410 | 7.032406 | 6.89955 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Schedule of Foreign Currency Translation (Details) (10 K) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Year End RMB: US$ Exchange Rate [Member] | ||||
Foreign exchange rate | 6.45488 | 6.52765 | 7.068231 | 6.96676 |
Annual Average RMB: US$ Exchange Rate [Member] | ||||
Foreign exchange rate | 6.50471 | 6.99410 | 7.032406 | 6.89955 |
Prepaid Expenses, Taxes and Oth
Prepaid Expenses, Taxes and Other Current Assets - Schedule of Prepaid Expenses, Taxes and Other Current Assets (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses And Advance Payment To Suppliers | |||
Prepaid expenses | $ 42,138 | $ 76,597 | |
Advance payment to suppliers | 196,101 | 122,616 | 96,717 |
Prepaid expenses, taxes and other current assets | $ 238,239 | $ 199,213 | $ 96,717 |
Prepaid Expenses, Taxes and O_2
Prepaid Expenses, Taxes and Other Current Assets - Schedule of Prepaid Expenses, Taxes and Other Current Assets (Details) (10-K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses And Advance Payment To Suppliers | |||
Prepaid expenses | $ 42,138 | $ 76,597 | |
Advance payment to suppliers | 196,101 | 122,616 | 96,717 |
Prepaid expenses, taxes and other current assets | $ 238,239 | $ 199,213 | $ 96,717 |
Other Receivables - Schedule of
Other Receivables - Schedule of Other Receivables (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | |||
Value Added Tax receivables | $ 17,797 | $ 29,477 | $ 60,946 |
Deposit | 65,779 | 65,046 | 56,251 |
Others | 12,394 | 1,730 | 14,044 |
Other receivables | $ 95,970 | $ 96,253 | $ 134,112 |
Other Receivables - Schedule _2
Other Receivables - Schedule of Other Receivables (Details) (10-K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | |||
Security deposit | $ 2,871 | ||
Value Added Tax receivables | $ 17,797 | 29,477 | 60,946 |
Deposit | 65,779 | 65,046 | 56,251 |
Others | 12,394 | 1,730 | 14,044 |
Other receivables | $ 95,970 | $ 96,253 | $ 134,112 |
Plant and Equipment - Schedule
Plant and Equipment - Schedule of Plant and Equipment (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Cost, Beginning balance | $ 3,251 | $ 614,668 |
Cost, Additions during the year | 11,173 | |
Cost, Disposals during the year | (622,738) | |
Cost, Effects of currency translation | 37 | 148 |
Cost, Ending balance | 3,288 | 3,251 |
Accumulated depreciation, Beginning balance | 2,015 | 247,184 |
Accumulated depreciation, Depreciation during the year | 272 | 142,219 |
Accumulated depreciation, Disposals during the year | (387,519) | |
Accumulated depreciation, Effects of currency translation | 37 | 131 |
Accumulated depreciation, Ending balance | 2,324 | 2,015 |
Net book value | 1,236 | 367,484 |
Net book value | 964 | 1,236 |
Computer Equipment [Member] | ||
Cost, Beginning balance | 776 | 368 |
Cost, Additions during the year | 382 | |
Cost, Disposals during the year | ||
Cost, Effects of currency translation | 9 | 26 |
Cost, Ending balance | 785 | 776 |
Accumulated depreciation, Beginning balance | 227 | |
Accumulated depreciation, Depreciation during the year | 212 | |
Accumulated depreciation, Disposals during the year | ||
Accumulated depreciation, Effects of currency translation | 9 | 15 |
Accumulated depreciation, Ending balance | 236 | 227 |
Net book value | 549 | 368 |
Net book value | 549 | 549 |
Furniture and Fittings [Member] | ||
Cost, Beginning balance | 1,256 | 651 |
Cost, Additions during the year | 560 | |
Cost, Disposals during the year | ||
Cost, Effects of currency translation | 14 | 45 |
Cost, Ending balance | 1,270 | 1,256 |
Accumulated depreciation, Beginning balance | 754 | 374 |
Accumulated depreciation, Depreciation during the year | 158 | 331 |
Accumulated depreciation, Disposals during the year | ||
Accumulated depreciation, Effects of currency translation | 9 | 49 |
Accumulated depreciation, Ending balance | 921 | 754 |
Net book value | 502 | 277 |
Net book value | 349 | 502 |
Office Equipment [Member] | ||
Cost, Beginning balance | 1,219 | 1,142 |
Cost, Additions during the year | ||
Cost, Disposals during the year | ||
Cost, Effects of currency translation | 14 | 77 |
Cost, Ending balance | 1,233 | 1,219 |
Accumulated depreciation, Beginning balance | 1,034 | 588 |
Accumulated depreciation, Depreciation during the year | 114 | 379 |
Accumulated depreciation, Disposals during the year | ||
Accumulated depreciation, Effects of currency translation | 19 | 67 |
Accumulated depreciation, Ending balance | 1,167 | 1,034 |
Net book value | 185 | 554 |
Net book value | 66 | 185 |
Leasehold Improvement [Member] | ||
Cost, Beginning balance | 612,507 | |
Cost, Additions during the year | 10,231 | |
Cost, Disposals during the year | (622,738) | |
Cost, Effects of currency translation | ||
Cost, Ending balance | ||
Accumulated depreciation, Beginning balance | 246,222 | |
Accumulated depreciation, Depreciation during the year | 141,297 | |
Accumulated depreciation, Disposals during the year | (387,519) | |
Accumulated depreciation, Effects of currency translation | ||
Accumulated depreciation, Ending balance | ||
Net book value | 366,285 | |
Net book value |
Plant and Equipment - Schedul_2
Plant and Equipment - Schedule of Plant and Equipment (Details) (10-K) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Cost, Beginning balance | $ 3,251 | $ 614,668 |
Cost, Additions during the year | 11,173 | |
Cost, Disposals during the year | (622,738) | |
Cost, Effects of currency translation | 37 | 148 |
Cost, Ending balance | 3,288 | 3,251 |
Accumulated depreciation, Beginning balance | 2,015 | 247,184 |
Accumulated depreciation, Depreciation during the year | 272 | 142,219 |
Accumulated depreciation, Disposals during the year | (387,519) | |
Accumulated depreciation, Effects of currency translation | 37 | 131 |
Accumulated depreciation, Ending balance | 2,324 | 2,015 |
Net book value | 1,236 | 367,484 |
Net book value | 964 | 1,236 |
Computer Equipment [Member] | ||
Cost, Beginning balance | 776 | 368 |
Cost, Additions during the year | 382 | |
Cost, Disposals during the year | ||
Cost, Effects of currency translation | 9 | 26 |
Cost, Ending balance | 785 | 776 |
Accumulated depreciation, Beginning balance | 227 | |
Accumulated depreciation, Depreciation during the year | 212 | |
Accumulated depreciation, Disposals during the year | ||
Accumulated depreciation, Effects of currency translation | 9 | 15 |
Accumulated depreciation, Ending balance | 236 | 227 |
Net book value | 549 | 368 |
Net book value | 549 | 549 |
Furniture and Fittings [Member] | ||
Cost, Beginning balance | 1,256 | 651 |
Cost, Additions during the year | 560 | |
Cost, Disposals during the year | ||
Cost, Effects of currency translation | 14 | 45 |
Cost, Ending balance | 1,270 | 1,256 |
Accumulated depreciation, Beginning balance | 754 | 374 |
Accumulated depreciation, Depreciation during the year | 158 | 331 |
Accumulated depreciation, Disposals during the year | ||
Accumulated depreciation, Effects of currency translation | 9 | 49 |
Accumulated depreciation, Ending balance | 921 | 754 |
Net book value | 502 | 277 |
Net book value | 349 | 502 |
Office Equipment [Member] | ||
Cost, Beginning balance | 1,219 | 1,142 |
Cost, Additions during the year | ||
Cost, Disposals during the year | ||
Cost, Effects of currency translation | 14 | 77 |
Cost, Ending balance | 1,233 | 1,219 |
Accumulated depreciation, Beginning balance | 1,034 | 588 |
Accumulated depreciation, Depreciation during the year | 114 | 379 |
Accumulated depreciation, Disposals during the year | ||
Accumulated depreciation, Effects of currency translation | 19 | 67 |
Accumulated depreciation, Ending balance | 1,167 | 1,034 |
Net book value | 185 | 554 |
Net book value | 66 | 185 |
Leasehold Improvement [Member] | ||
Cost, Beginning balance | 612,507 | |
Cost, Additions during the year | 10,231 | |
Cost, Disposals during the year | (622,738) | |
Cost, Effects of currency translation | ||
Cost, Ending balance | ||
Accumulated depreciation, Beginning balance | 246,222 | |
Accumulated depreciation, Depreciation during the year | 141,297 | |
Accumulated depreciation, Disposals during the year | (387,519) | |
Accumulated depreciation, Effects of currency translation | ||
Accumulated depreciation, Ending balance | ||
Net book value | 366,285 | |
Net book value |
Right of Use Assets (Details Na
Right of Use Assets (Details Narrative) (10- - Lease Agreement [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Right of use asset term | 5 years |
Right of use asset description | Right of use asset solely consisted of a five-year lease agreement with China International Consumer Electronics Show and Exchange Center (CEEC) commencing on July 17, 2017 and expiring on July 17, 2022. The Company ceased its operation at CEEC exhibition mall in March 2021 due to the change in mall operations. |
Right of Use Assets - Schedule
Right of Use Assets - Schedule of Right of Use Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Right Of Use Assets | ||
Cost, Beginning balance | $ 366,421 | |
Cost, Additions during the year | 302,745 | |
Cost, Write-off during the year | (366,421) | |
Cost, Effects of currency translation | ||
Cost, Ending balance | 302,745 | |
Accumulated depreciation, Beginning balance | 102,257 | |
Accumulated depreciation, Depreciation during the year | 25,035 | 102,890 |
Accumulated depreciation, Write-off during the year | (205,147) | |
Accumulated depreciation, Effects of currency translation | 194 | |
Accumulated depreciation, Ending balance | 25,229 | |
Net book value | 264,164 | |
Net book value | $ 277,516 |
Right of Use Assets - Schedul_2
Right of Use Assets - Schedule of Right of Use Assets (Details) (10-K) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Right Of Use Assets | ||
Cost, Beginning balance | $ 366,421 | |
Cost, Additions during the year | 302,745 | |
Cost, Write-off during the year | (366,421) | |
Cost, Effects of currency translation | ||
Cost, Ending balance | 302,745 | |
Accumulated depreciation, Beginning balance | 102,257 | |
Accumulated depreciation, Depreciation during the year | 25,035 | 102,890 |
Accumulated depreciation, Write-off during the year | (205,147) | |
Accumulated depreciation, Effects of currency translation | 194 | |
Accumulated depreciation, Ending balance | 25,229 | |
Net book value | 264,164 | |
Net book value | $ 277,516 |
Goodwill (Details Narrative) (1
Goodwill (Details Narrative) (10-K) - USD ($) | Aug. 02, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Impairment loss | $ 49,564 | ||||
Share Exchange Agreement [Member] | Shenzhen Yeller Video & Technology Co Shareholders [Member] | |||||
Purchase of shares, description | QCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.'s shareholders: 1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). |
Other Payables and Accruals - S
Other Payables and Accruals - Schedule of Other Payables and Accruals (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | ||||
Accrued payroll and welfare payable | $ 1,709 | $ 12,882 | $ 10,820 | |
VAT and other taxes payable | 208 | 6,380 | 557 | |
Others | [1] | 575,226 | 501,678 | 284,241 |
Accounts Payable, Other Payables and Accruals | $ 577,224 | $ 520,940 | $ 295,618 | |
[1] | Others primarily consist of rental payable. |
Other Payables and Accruals -_2
Other Payables and Accruals - Schedule of Other Payables and Accruals (Details) (10-K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | ||||
Accrued payroll and welfare payable | $ 1,709 | $ 12,882 | $ 10,820 | |
VAT and other taxes payable | 208 | 6,380 | 557 | |
Others | [1] | 575,226 | 501,678 | 284,241 |
Accounts Payable, Other Payables and Accruals | $ 577,224 | $ 520,940 | $ 295,618 | |
[1] | Others primarily consist of rental payable. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Balances Due to and Due from Related Parties (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Due from related parties | $ 20,140 | $ 64,496 | $ 80,270 |
Due to related parties | 553,814 | 374,553 | 195,214 |
Huang Xiansheng [Member] | |||
Due from related parties | $ 20,140 | $ 19,915 | 25,837 |
Relationship | Minority shareholder of Shenzhen Yeller | Minority shareholder of Shenzhen Yeller | |
Shenzhen Yeller Investment & Development Co., Ltd [Member] | |||
Due from related parties | $ 44,581 | 54,433 | |
Due to related parties | $ 9,672 | ||
Relationship | Company owned by President of the Company | Company owned by President of the Company | |
Huang Yusheng [Member] | |||
Due to related parties | $ 544,142 | $ 374,553 | $ 137,791 |
Relationship | President of the Company | President of the Company |
Related Party Transactions - _2
Related Party Transactions - Schedule of Balances Due to and Due from Related Parties (Details) (10-K) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Due from related parties | $ 20,140 | $ 64,496 | $ 80,270 |
Due to related parties | 553,814 | 374,553 | 195,214 |
Huang Xiansheng [Member] | |||
Due from related parties | $ 20,140 | $ 19,915 | 25,837 |
Relationship | Minority shareholder of Shenzhen Yeller | Minority shareholder of Shenzhen Yeller | |
Shenzhen Yeller Investment & Development Co., Ltd [Member] | |||
Due from related parties | $ 44,581 | 54,433 | |
Due to related parties | $ 9,672 | ||
Relationship | Company owned by President of the Company | Company owned by President of the Company | |
Huang Zhicheng [Member] | |||
Due to related parties | 57,423 | ||
Relationship | Former shareholder of the Company | ||
Huang Yusheng [Member] | |||
Due to related parties | $ 544,142 | $ 374,553 | $ 137,791 |
Relationship | President of the Company | President of the Company |
Related Party Transactions - _3
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd | $ 6,177 | $ 11,173 | $ 4,200 | |
Shenzhen Yeller Investment & Development Co., Ltd [Member] | ||||
Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd | 4,458 | 9,975 | 232,238 | |
Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd | 28,466 | 70,703 | 45,351 | |
Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd | 26,750 | 7,592 | 285,561 | |
Sales of finished goods to Shenzhen Yeller Investment & Development Co., Ltd | $ 7,237 |
Related Party Transactions - _4
Related Party Transactions - Schedule of Related Party Transactions (Details) (10-K) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd | $ 6,177 | $ 11,173 | $ 4,200 | |
Shenzhen Yeller Investment & Development Co., Ltd [Member] | ||||
Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd | 4,458 | 9,975 | 232,238 | |
Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd | 28,466 | 70,703 | 45,351 | |
Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd | 26,750 | 7,592 | 285,561 | |
Sales of finished goods to Shenzhen Yeller Investment & Development Co., Ltd | $ 7,237 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Net operating loss carryforward | $ 1,065,588 | $ 418,712 | $ 607,866 | $ 322,868 |
Hong Kong [Member] | ||||
Income tax rate | 16.50% | 16.50% | ||
PRC [Member] | ||||
Income tax rate | 25.00% | 25.00% |
Income Taxes (Details Narrati_2
Income Taxes (Details Narrative) (10-K) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Net operating loss carryforward | $ 1,065,588 | $ 418,712 | $ 607,866 | $ 322,868 |
Hong Kong [Member] | ||||
Income tax rate | 16.50% | 16.50% | ||
PRC [Member] | ||||
Income tax rate | 25.00% | 25.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefits) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Loss before tax | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) |
Tax credit calculated at statutory tax rate | (46,438) | (71,706) | (241,873) | (71,164) |
Effect of different tax rates in other countries | 112 | 36 | 118 | |
Others | 46,438 | 71,594 | 241,837 | 71,046 |
Income tax expense (benefits) |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Expense (Benefits) (Details) (10-K) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Loss before tax | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) |
Tax credit calculated at statutory tax rate | (46,438) | (71,706) | (241,873) | (71,164) |
Effect of different tax rates in other countries | 112 | 36 | 118 | |
Others | 46,438 | 71,594 | 241,837 | 71,046 |
Income tax expense (benefits) |
Deferred Subsidy Income (Detail
Deferred Subsidy Income (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Subsidy of contractual obligation | $ 471,901 | $ 471,901 |
Deferred subsidy income | 154,683 | 181,639 |
RMB [Member] | ||
Subsidy of contractual obligation | $ 3,245,000 | $ 3,245,000 |
Deferred Subsidy Income (Deta_2
Deferred Subsidy Income (Details Narrative) (10-K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Subsidy of contractual obligation | $ 471,901 | $ 471,901 |
Deferred subsidy income | 154,683 | 181,639 |
RMB [Member] | ||
Subsidy of contractual obligation | $ 3,245,000 | $ 3,245,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
Right-of-use assets | $ 277,516 | $ 264,164 | |
Current operating lease liabilities | 248,942 | 177,641 | 102,160 |
Non-current operating lease liabilities | $ 181,375 | $ 166,444 |
Leases (Details Narrative) (10-
Leases (Details Narrative) (10-K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
Right-of-use assets | $ 277,516 | $ 264,164 | |
Current operating lease liabilities | 248,942 | 177,641 | 102,160 |
Non-current operating lease liabilities | $ 181,375 | $ 166,444 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments of Operating Leases (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
Within 1 year | $ 259,195 | $ 183,990 | $ 113,291 |
After 1 year but within 5 years | 188,729 | 171,630 | |
Total lease payments | 447,924 | 183,990 | 284,921 |
Less: imputed interest | (17,607) | (6,349) | (16,318) |
Total lease obligations | 430,317 | 177,641 | 268,603 |
Less: current obligations | (248,942) | (177,641) | (102,160) |
Long-term lease obligations | $ 181,375 | $ 166,444 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Payments of Operating Leases (Details) (10-K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
Within 1 year | $ 259,195 | $ 183,990 | $ 113,291 |
After 1 year but within 5 years | 188,729 | 171,630 | |
Total lease payments | 447,924 | 183,990 | 284,921 |
Less: imputed interest | (17,607) | (6,349) | (16,318) |
Total lease obligations | 430,317 | 177,641 | 268,603 |
Less: current obligations | (248,942) | (177,641) | (102,160) |
Long-term lease obligations | $ 181,375 | $ 166,444 |
Reserves (Details Narrative)
Reserves (Details Narrative) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Reserves | ||
Statutory reserves, description | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company's discretion. | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company's discretion. |
Reserves (Details Narrative) (1
Reserves (Details Narrative) (10-K) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Reserves | ||
Statutory reserves, description | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company's discretion. | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company's discretion. |
Organization and Principal A_10
Organization and Principal Activities (Details Narrative) (Huale Group Co.Limited) | Aug. 02, 2019 |
Huale Group Co., Ltd ("HGL") [Member] | Share Purchase Agreement [Member] | Shenzhen Yeller Video & Technology Co Shareholders [Member] | |
Purchase of shares, description | OCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.'s shareholders:1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). |
Organization and Principal A_11
Organization and Principal Activities - Schedule of Company's Subsidiaries (Details) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Huale Holding Co., Ltd ("HHC") [Member] | |||
Date of incorporation | Sep. 28, 2016 | Sep. 28, 2016 | May 15, 2017 |
Date of acquisition | Apr. 28, 2020 | Apr. 28, 2020 | |
Place of incorporation | Seychelles | Seychelles | Seychelles |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Huale (Hong Kong) Investment Co., Limited ("HHK") [Member] | |||
Date of incorporation | Sep. 16, 2016 | Sep. 16, 2016 | Sep. 16, 2016 |
Date of acquisition | May 29, 2018 | May 29, 2018 | May 29, 2018 |
Place of incorporation | Hong Kong | Hong Kong | Hong Kong |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Qianhai Lewenhua Consulting Management (Shenzhen) Co., Limited ("QCM") [Member] | |||
Date of incorporation | Mar. 27, 2017 | Mar. 27, 2017 | Mar. 27, 2017 |
Place of incorporation | China | China | China |
Percentage of legal ownership by the Company | 100.00% | 100.00% | 100.00% |
Principal activities | Investment holding | Investment holding | Investment holding |
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||
Date of incorporation | May 5, 2017 | May 5, 2017 | May 5, 2017 |
Date of acquisition | Aug. 2, 2019 | Aug. 2, 2019 | Aug. 2, 2019 |
Place of incorporation | China | China | China |
Percentage of legal ownership by the Company | 80.00% | 80.00% | 80.00% |
Principal activities | Selling audio and video equipment, smart home and cultural media | Selling audio and video equipment, smart home and cultural media | Selling audio and video equipment, smart home and cultural media |
Summary of Significant Accou_16
Summary of Significant Accounting Policies (Details Narrative) (Huale Group Co.Limited) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 16 Months Ended | |||||
Sep. 30, 2018 | Mar. 31, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Jan. 02, 2019 | Dec. 31, 2018 | |
Net loss | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) | |||||
Net current liability | 1,517,991 | 1,217,646 | |||||||
Total (deficit) equity | (1,420,886) | (576,475) | (1,216,410) | (298,447) | $ 463 | ||||
Asset impairment charge | $ 161,274 | ||||||||
Statutory reserves, description | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | |||||||
Operating lease description | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | |||||||
Lessee operating lease term | 12 months | 12 months | |||||||
Value added tax rate | 6.00% | 6.00% | |||||||
Value addet tax, description | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | |||||||
Right-of-use assets | $ 277,516 | 264,164 | |||||||
Operating lease liabilities | $ 430,317 | $ 177,641 | 268,603 | ||||||
Shenzhen Yeller [Member] | |||||||||
Value added tax rate | 13.00% | 3.00% | |||||||
Shenzhen Yeller [Member] | Minimum [Member] | |||||||||
Value added tax rate | 9.00% | ||||||||
Shenzhen Yeller [Member] | Maximum [Member] | |||||||||
Value added tax rate | 6.00% | ||||||||
QCM Small-Scale Taxpayer [Member] | |||||||||
Value added tax rate | 3.00% | ||||||||
Salvage Value [Member] | |||||||||
Salvage percentage | 0.00% | 0.00% | |||||||
Huale Group Co., Ltd ("HGL") [Member] | |||||||||
Net loss | 245,480 | ||||||||
Net current liability | 694,937 | ||||||||
Total (deficit) equity | 364,075 | ||||||||
Asset impairment charge | |||||||||
Statutory reserves, description | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | ||||||||
Operating lease description | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | ||||||||
Lessee operating lease term | 12 months | ||||||||
Value added tax rate | 6.00% | ||||||||
Value addet tax, description | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | ||||||||
Right-of-use assets | $ 209,977 | ||||||||
Operating lease liabilities | $ 214,947 | $ 268,603 | |||||||
Huale Group Co., Ltd ("HGL") [Member] | ASU 2016-02 [Member] | |||||||||
Right-of-use assets | $ 264,164 | ||||||||
Operating lease liabilities | $ 268,604 | ||||||||
Huale Group Co., Ltd ("HGL") [Member] | Shenzhen Yeller [Member] | |||||||||
Value added tax rate | 13.00% | 3.00% | |||||||
Huale Group Co., Ltd ("HGL") [Member] | Shenzhen Yeller [Member] | Minimum [Member] | |||||||||
Value added tax rate | 9.00% | ||||||||
Huale Group Co., Ltd ("HGL") [Member] | Shenzhen Yeller [Member] | Maximum [Member] | |||||||||
Value added tax rate | 6.00% | ||||||||
Huale Group Co., Ltd ("HGL") [Member] | QCM Small-Scale Taxpayer [Member] | |||||||||
Value added tax rate | 3.00% | ||||||||
Huale Group Co., Ltd ("HGL") [Member] | Salvage Value [Member] | |||||||||
Salvage percentage | 0.00% |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Plant and Equipment (Details) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Furniture and Fittings [Member] | |||
Plant and equipment, estimated useful lives | 3 years | 3 years | |
Office Equipment [Member] | |||
Plant and equipment, estimated useful lives | 3 years | 3 years | |
Leasehold Improvement [Member] | Minimum [Member] | |||
Plant and equipment, estimated useful lives | 42 months | 42 months | |
Leasehold Improvement [Member] | Maximum [Member] | |||
Plant and equipment, estimated useful lives | 52 months | 52 months | |
Huale Group Co., Ltd ("HGL") [Member] | Furniture and Fittings [Member] | |||
Plant and equipment, estimated useful lives | 3 years | ||
Huale Group Co., Ltd ("HGL") [Member] | Office Equipment [Member] | |||
Plant and equipment, estimated useful lives | 3 years | ||
Huale Group Co., Ltd ("HGL") [Member] | Leasehold Improvement [Member] | Minimum [Member] | |||
Plant and equipment, estimated useful lives | 42 months | ||
Huale Group Co., Ltd ("HGL") [Member] | Leasehold Improvement [Member] | Maximum [Member] | |||
Plant and equipment, estimated useful lives | 52 months |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Schedule of Foreign Currency Translation (Details) (Huale Group Co.Limited) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Year End RMB: US$ Exchange Rate [Member] | |||||
Foreign exchange rate | 6.45488 | 6.52765 | 7.068231 | 6.96676 | |
Annual Average RMB: US$ Exchange Rate [Member] | |||||
Foreign exchange rate | 6.50471 | 6.99410 | 7.032406 | 6.89955 | |
Huale Group Co., Ltd ("HGL") [Member] | Year End RMB: US$ Exchange Rate [Member] | |||||
Foreign exchange rate | 7.068231 | 6.87644 | |||
Huale Group Co., Ltd ("HGL") [Member] | Annual Average RMB: US$ Exchange Rate [Member] | |||||
Foreign exchange rate | 7.032406 | 6.61464 |
Other Receivables - Schedule _3
Other Receivables - Schedule of Other Receivables (Details) (Huale Group Co.Limited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Security deposit | $ 2,871 | |||
Value Added Tax Receivables | $ 17,797 | 29,477 | 60,946 | |
Deposit | 65,779 | 65,046 | 56,251 | |
Others | 12,394 | 1,730 | 14,044 | |
Other receivables | $ 95,970 | $ 96,253 | 134,112 | |
Huale Group Co., Ltd ("HGL") [Member] | ||||
Security deposit | 2,871 | |||
Value Added Tax Receivables | 65,682 | 60,946 | ||
Deposit | 60,071 | 56,251 | ||
Others | 34,152 | 14,044 | ||
Other receivables | $ 159,905 | $ 134,112 |
Plant and Equipment - Schedul_3
Plant and Equipment - Schedule of Plant and Equipment (Details) (Huale Group Co.Limited) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost, Beginning balance | $ 3,251 | $ 614,668 | $ 614,668 | |
Cost, Additions during the year | 11,173 | |||
Cost, Effects of currency translation | 37 | 148 | ||
Cost, Ending balance | 3,288 | 3,251 | $ 614,668 | |
Accumulated depreciation, Beginning balance | 2,015 | 247,184 | 247,184 | |
Accumulated depreciation, Depreciation during the year | 272 | 142,219 | ||
Accumulated depreciation, Effects of currency translation | 37 | 131 | ||
Accumulated depreciation, Ending balance | 2,324 | 2,015 | 247,184 | |
Net book value | 964 | 1,236 | 367,484 | |
Computer Equipment [Member] | ||||
Cost, Beginning balance | 776 | 368 | 368 | |
Cost, Additions during the year | 382 | |||
Cost, Effects of currency translation | 9 | 26 | ||
Cost, Ending balance | 785 | 776 | 368 | |
Accumulated depreciation, Beginning balance | 227 | |||
Accumulated depreciation, Depreciation during the year | 212 | |||
Accumulated depreciation, Effects of currency translation | 9 | 15 | ||
Accumulated depreciation, Ending balance | 236 | 227 | ||
Net book value | 549 | 549 | 368 | |
Furniture and Fittings [Member] | ||||
Cost, Beginning balance | 1,256 | 651 | 651 | |
Cost, Additions during the year | 560 | |||
Cost, Effects of currency translation | 14 | 45 | ||
Cost, Ending balance | 1,270 | 1,256 | 651 | |
Accumulated depreciation, Beginning balance | 754 | 374 | 374 | |
Accumulated depreciation, Depreciation during the year | 158 | 331 | ||
Accumulated depreciation, Effects of currency translation | 9 | 49 | ||
Accumulated depreciation, Ending balance | 921 | 754 | 374 | |
Net book value | 349 | 502 | 277 | |
Office Equipment [Member] | ||||
Cost, Beginning balance | 1,219 | 1,142 | 1,142 | |
Cost, Additions during the year | ||||
Cost, Effects of currency translation | 14 | 77 | ||
Cost, Ending balance | 1,233 | 1,219 | 1,142 | |
Accumulated depreciation, Beginning balance | 1,034 | 588 | 588 | |
Accumulated depreciation, Depreciation during the year | 114 | 379 | ||
Accumulated depreciation, Effects of currency translation | 19 | 67 | ||
Accumulated depreciation, Ending balance | 1,167 | 1,034 | 588 | |
Net book value | 66 | 185 | 554 | |
Leasehold Improvement [Member] | ||||
Cost, Beginning balance | 612,507 | 612,507 | ||
Cost, Additions during the year | 10,231 | |||
Cost, Effects of currency translation | ||||
Cost, Ending balance | 612,507 | |||
Accumulated depreciation, Beginning balance | 246,222 | 246,222 | ||
Accumulated depreciation, Depreciation during the year | 141,297 | |||
Accumulated depreciation, Effects of currency translation | ||||
Accumulated depreciation, Ending balance | 246,222 | |||
Net book value | 366,285 | |||
Huale Group Co., Ltd ("HGL") [Member] | ||||
Cost, Beginning balance | 614,668 | 614,668 | ||
Cost, Additions during the year | 6,177 | |||
Cost, Effects of currency translation | (8,824) | |||
Cost, Ending balance | 612,021 | 614,668 | ||
Accumulated depreciation, Beginning balance | 247,184 | 247,184 | ||
Accumulated depreciation, Depreciation during the year | 70,245 | |||
Accumulated depreciation, Effects of currency translation | (3,548) | |||
Accumulated depreciation, Ending balance | 313,881 | 247,184 | ||
Net book value | 298,140 | 367,484 | ||
Huale Group Co., Ltd ("HGL") [Member] | Computer Equipment [Member] | ||||
Cost, Beginning balance | 368 | 368 | ||
Cost, Additions during the year | ||||
Cost, Effects of currency translation | (5) | |||
Cost, Ending balance | 363 | 368 | ||
Accumulated depreciation, Beginning balance | ||||
Accumulated depreciation, Depreciation during the year | ||||
Accumulated depreciation, Effects of currency translation | ||||
Accumulated depreciation, Ending balance | ||||
Net book value | 363 | 368 | ||
Huale Group Co., Ltd ("HGL") [Member] | Furniture and Fittings [Member] | ||||
Cost, Beginning balance | 651 | 651 | ||
Cost, Additions during the year | 518 | |||
Cost, Effects of currency translation | (9) | |||
Cost, Ending balance | 1,160 | 651 | ||
Accumulated depreciation, Beginning balance | 374 | 374 | ||
Accumulated depreciation, Depreciation during the year | 107 | |||
Accumulated depreciation, Effects of currency translation | (5) | |||
Accumulated depreciation, Ending balance | 476 | 374 | ||
Net book value | 684 | 277 | ||
Huale Group Co., Ltd ("HGL") [Member] | Office Equipment [Member] | ||||
Cost, Beginning balance | 1,142 | 1,142 | ||
Cost, Additions during the year | ||||
Cost, Effects of currency translation | (16) | |||
Cost, Ending balance | 1,126 | 1,142 | ||
Accumulated depreciation, Beginning balance | 588 | 588 | ||
Accumulated depreciation, Depreciation during the year | 188 | |||
Accumulated depreciation, Effects of currency translation | (8) | |||
Accumulated depreciation, Ending balance | 768 | 588 | ||
Net book value | 358 | 554 | ||
Huale Group Co., Ltd ("HGL") [Member] | Leasehold Improvement [Member] | ||||
Cost, Beginning balance | 612,507 | 612,507 | ||
Cost, Additions during the year | 5,659 | |||
Cost, Effects of currency translation | (8,794) | |||
Cost, Ending balance | 609,372 | 612,507 | ||
Accumulated depreciation, Beginning balance | 246,222 | $ 246,222 | ||
Accumulated depreciation, Depreciation during the year | 69,950 | |||
Accumulated depreciation, Effects of currency translation | (3,535) | |||
Accumulated depreciation, Ending balance | 312,637 | 246,222 | ||
Net book value | $ 296,736 | $ 366,285 |
Goodwill (Details Narrative) (H
Goodwill (Details Narrative) (Huale Group Co.Limited) - USD ($) | Aug. 02, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Impairment loss | $ 161,274 | ||||
Huale Group Co., Ltd ("HGL") [Member] | |||||
Impairment loss | |||||
Huale Group Co., Ltd ("HGL") [Member] | Share Purchase Agreement [Member] | Shenzhen Yeller Video & Technology Co Shareholders [Member] | |||||
Purchase of shares, description | OCM entered into a share purchase agreement among Shenzhen Yeller Video & Technology Co., Ltd.'s shareholders:1) Huang Yusheng, 2) Huang Xiansheng, 3) Chen Huanwei, 4) Chen Zemin and 5) Lai Xiaopeng to purchase 80% of shares from these shareholders for RMB 5 (USD 0.72). |
Other Payables and Accruals -_3
Other Payables and Accruals - Schedule of Other Payables and Accruals (Details) (Huale Group Co.Limited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accrued payroll and welfare payable | $ 1,709 | $ 12,882 | $ 10,820 | ||
VAT and other taxes payable | 208 | 6,380 | 557 | ||
Others | [1] | 575,226 | 501,678 | 284,241 | |
Accounts Payable, Other Payables and Accruals | $ 577,224 | $ 520,940 | 295,618 | ||
Huale Group Co., Ltd ("HGL") [Member] | |||||
Accrued payroll and welfare payable | $ 10,383 | 10,820 | |||
VAT and other taxes payable | 21 | 557 | |||
Others | [1] | 361,990 | 284,241 | ||
Accounts Payable, Other Payables and Accruals | $ 372,394 | $ 295,618 | |||
[1] | Others primarily consist of rental payable. |
Related Party Transactions - _5
Related Party Transactions - Schedule of Balances Due to and Due from Related Parties (Details) (Huale Group Co.Limited) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Due from related parties | $ 20,140 | $ 64,496 | $ 80,270 | |
Due to related parties | 553,814 | 374,553 | 195,214 | |
Huang Xiansheng [Member] | ||||
Due from related parties | $ 20,140 | $ 19,915 | 25,837 | |
Relationship | Minority shareholder of Shenzhen Yeller | Minority shareholder of Shenzhen Yeller | ||
Shenzhen Yeller Investment & Development Co., Ltd [Member] | ||||
Due from related parties | $ 44,581 | 54,433 | ||
Due to related parties | $ 9,672 | |||
Relationship | Company owned by President of the Company | Company owned by President of the Company | ||
Huang Yusheng [Member] | ||||
Due to related parties | $ 544,142 | $ 374,553 | 137,791 | |
Relationship | President of the Company | President of the Company | ||
Huale Group Co., Ltd ("HGL") [Member] | ||||
Due from related parties | $ 445,585 | 162,054 | ||
Huale Group Co., Ltd ("HGL") [Member] | Huang Xiansheng [Member] | ||||
Due from related parties | 25,837 | |||
Relationship | Minority shareholder of Shenzhen Yeller | |||
Huale Group Co., Ltd ("HGL") [Member] | Shenzhen Huashengchuang Investment Development Co., Ltd [Member] | ||||
Due from related parties | $ 282,956 | |||
Relationship | Company owned by President of the Company | |||
Huale Group Co., Ltd ("HGL") [Member] | Huale Acoustics Limited [Member] | ||||
Due from related parties | $ 123,126 | 81,784 | ||
Relationship | Ultimate Holding Company | |||
Huale Group Co., Ltd ("HGL") [Member] | Shenzhen Yeller Investment & Development Co., Ltd [Member] | ||||
Due from related parties | $ 39,503 | 54,433 | ||
Relationship | Company owned by President of the Company | |||
Huale Group Co., Ltd ("HGL") [Member] | Huang Yusheng [Member] | ||||
Due from related parties | $ 791,283 | $ 105,942 | ||
Relationship | Sole director of the Company |
Related Party Transactions - _6
Related Party Transactions - Schedule of Related Party Transactions (Details) (Huale Group Co.Limited) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd | $ 6,177 | $ 11,173 | $ 4,200 | |
Shenzhen Yeller Investment & Development Co., Ltd [Member] | ||||
Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd | 4,458 | 9,975 | 232,238 | |
Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd | 28,466 | 70,703 | 45,351 | |
Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd | $ 26,750 | $ 7,592 | 285,561 | |
Huale Group Co., Ltd ("HGL") [Member] | Shenzhen Yeller Investment & Development Co., Ltd [Member] | ||||
Purchases of goods from Shenzhen Yeller Investment & Development Co., Ltd | 13,553 | 232,238 | ||
Installation service charged by Shenzhen Yeller Investment & Development Co., Ltd | 10,283 | 45,351 | ||
Rental fee charged to Shenzhen Yeller Investment & Development Co., Ltd | $ 285,561 |
Income Taxes (Details Narrati_3
Income Taxes (Details Narrative) (Huale Group Co.Limited) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net operating loss carryforward | $ 1,065,588 | $ 607,866 | $ 418,712 | $ 322,868 |
Hong Kong [Member] | ||||
Income tax rate | 16.50% | 16.50% | ||
PRC [Member] | ||||
Income tax rate | 25.00% | 25.00% | ||
Huale Group Co., Ltd ("HGL") [Member] | ||||
Net operating loss carryforward | $ 567,000 | |||
Huale Group Co., Ltd ("HGL") [Member] | Hong Kong [Member] | ||||
Income tax rate | 16.50% | |||
Huale Group Co., Ltd ("HGL") [Member] | PRC [Member] | ||||
Income tax rate | 25.00% |
Income Taxes - Schedule of In_3
Income Taxes - Schedule of Income Tax Expense (Benefits) (Details) (Huale Group Co.Limited) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss before tax | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) | |
Tax credit calculated at statutory tax rate | (46,438) | (71,706) | (241,873) | (71,164) | |
Effect of different tax rates in other countries | 112 | 36 | 118 | ||
Others | 46,438 | 71,594 | 241,837 | 71,046 | |
Income tax expense (benefits) | |||||
Huale Group Co., Ltd ("HGL") [Member] | |||||
Loss before tax | (245,480) | $ (28,265) | |||
Tax credit calculated at statutory tax rate | (61,370) | (7,066) | |||
Effect of different tax rates in other countries | 56 | ||||
Others | 61,314 | 7,066 | |||
Income tax expense (benefits) |
Leases (Details Narrative) (Hua
Leases (Details Narrative) (Huale Group Co.Limited) - USD ($) | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-use assets | $ 277,516 | $ 264,164 | ||
Current operating lease liabilities | 248,942 | 177,641 | 102,160 | |
Non-current operating lease liabilities | 181,375 | 166,444 | ||
Subsidy of contractual obligation | 471,901 | 471,901 | ||
Deferred subsidy income | 154,683 | 181,639 | ||
RMB [Member] | ||||
Subsidy of contractual obligation | $ 3,245,000 | $ 3,245,000 | ||
Huale Group Co., Ltd ("HGL") [Member] | ||||
Lease expiration date | Jul. 17, 2022 | |||
Right-of-use assets | $ 209,977 | |||
Current operating lease liabilities | 102,902 | 102,160 | ||
Non-current operating lease liabilities | 112,045 | $ 166,444 | ||
Subsidy of contractual obligation | 471,901 | |||
Deferred subsidy income | 220,719 | |||
Huale Group Co., Ltd ("HGL") [Member] | RMB [Member] | ||||
Subsidy of contractual obligation | $ 3,245,000 |
Leases - Schedule of Future M_3
Leases - Schedule of Future Minimum Payments of Operating Leases (Details) (Huale Group Co.Limited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Within 1 year | $ 259,195 | $ 183,990 | $ 113,291 | |
After 1 year but within 5 years | 188,729 | 171,630 | ||
Total lease payments | 447,924 | 183,990 | 284,921 | |
Less: imputed interest | (17,607) | (6,349) | (16,318) | |
Total lease obligations | 430,317 | 177,641 | 268,603 | |
Less: current obligations | (248,942) | (177,641) | (102,160) | |
Long-term lease obligations | $ 181,375 | 166,444 | ||
Huale Group Co., Ltd ("HGL") [Member] | ||||
Within 1 year | $ 113,291 | 113,291 | ||
After 1 year but within 5 years | 122,732 | 171,630 | ||
Total lease payments | 236,023 | 284,921 | ||
Less: imputed interest | (21,076) | (16,318) | ||
Total lease obligations | 214,947 | 268,603 | ||
Less: current obligations | (102,902) | (102,160) | ||
Long-term lease obligations | $ 112,045 | $ 166,444 |
Reserves (Details Narrative) (H
Reserves (Details Narrative) (Huale Group Co.Limited) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Statutory reserves, description | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company's discretion. | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company's discretion. | |
Huale Group Co., Ltd ("HGL") [Member] | |||
Statutory reserves, description | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company's discretion. |
Summary of Significant Accou_19
Summary of Significant Accounting Policies (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | Jan. 01, 2012 | Sep. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Jan. 02, 2019 |
Net loss | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) | ||||
Current liability | $ 1,957,046 | $ 1,719,132 | 1,213,895 | |||||
Statutory reserves, description | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | ||||||
Operating lease description | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | ||||||
Lessee operating lease term | 12 months | 12 months | ||||||
Value added tax rate | 6.00% | 6.00% | ||||||
Value addet tax, description | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | ||||||
Right-of-use assets | $ 277,516 | 264,164 | ||||||
Operating lease liabilities | $ 430,317 | $ 177,641 | 268,603 | |||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||||||
Net loss | 102,394 | 103,664 | ||||||
Current liability | 25,532 | 383,985 | ||||||
Total equity | $ 370,177 | $ 89,339 | ||||||
Salvage value percentage | 0.00% | 0.00% | ||||||
Statutory reserves, description | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | ||||||
Operating lease description | As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | ||||||
Lessee operating lease term | 12 months | 12 months | ||||||
Value added tax rate | 6.00% | 13.00% | 3.00% | |||||
Value addet tax, description | The PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program ("Pilot Program"), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company's financial statements. | |||||||
Right-of-use assets | $ 209,977 | $ 264,164 | ||||||
Operating lease liabilities | $ 214,947 | $ 268,603 | ||||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ASU 2016-02 [Member] | ||||||||
Right-of-use assets | $ 264,164 | |||||||
Operating lease liabilities | $ 268,604 | |||||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Minimum [Member] | ||||||||
Value added tax rate | 9.00% | |||||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Maximum [Member] | ||||||||
Value added tax rate | 6.00% |
Summary of Significant Accou_20
Summary of Significant Accounting Policies (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) - USD ($) | Jan. 01, 2012 | Sep. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Jan. 02, 2019 |
Net loss | $ (185,750) | $ (286,823) | $ (967,491) | $ (284,655) | ||||
Current liability | $ 1,957,046 | $ 1,719,132 | 1,213,895 | |||||
Statutory reserves, description | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | ||||||
Operating lease description | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | ||||||
Lessee operating lease term | 12 months | 12 months | ||||||
Value added tax rate | 6.00% | 6.00% | ||||||
Value addet tax, description | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | From May 2017 to August 2018, Shenzhen Yeller is a small-scale taxpayer subject to a 3% VAT rate. Since September 2018, Shenzhen Yeller became general taxpayer and subject to VAT rates of 13%, 9% and 6%. From March 2017, OCM is a small-scale taxpayer subject to a 3% VAT rate. | ||||||
Right-of-use assets | $ 277,516 | 264,164 | ||||||
Operating lease liabilities | $ 430,317 | $ 177,641 | 268,603 | |||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||||||
Net loss | 102,394 | 103,664 | ||||||
Current liability | 25,532 | 383,985 | ||||||
Total equity | $ 370,177 | $ 89,339 | ||||||
Salvage value percentage | 0.00% | 0.00% | ||||||
Statutory reserves, description | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise's PRC registered capital. | ||||||
Operating lease description | As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | As the lessee, a lease is a finance lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the asset's estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception date. | ||||||
Lessee operating lease term | 12 months | 12 months | ||||||
Value added tax rate | 6.00% | 13.00% | 3.00% | |||||
Value addet tax, description | The PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program ("Pilot Program"), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6% of revenue. The net VAT balance between input VAT and output VAT is recorded as accrued expenses in the Company's financial statements. | |||||||
Right-of-use assets | $ 209,977 | $ 264,164 | ||||||
Operating lease liabilities | $ 214,947 | $ 268,603 | ||||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ASU 2016-02 [Member] | ||||||||
Right-of-use assets | $ 264,164 | |||||||
Operating lease liabilities | $ 268,604 | |||||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Minimum [Member] | ||||||||
Value added tax rate | 9.00% | |||||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Maximum [Member] | ||||||||
Value added tax rate | 6.00% |
Summary of Significant Accou_21
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Plant and Equipment (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Furniture and Fittings [Member] | ||||
Plant and equipment, estimated useful lives | 3 years | 3 years | ||
Office Equipment [Member] | ||||
Plant and equipment, estimated useful lives | 3 years | 3 years | ||
Leasehold Improvement [Member] | Minimum [Member] | ||||
Plant and equipment, estimated useful lives | 42 months | 42 months | ||
Leasehold Improvement [Member] | Maximum [Member] | ||||
Plant and equipment, estimated useful lives | 52 months | 52 months | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Furniture and Fittings [Member] | ||||
Plant and equipment, estimated useful lives | 3 years | 3 years | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Office Equipment [Member] | ||||
Plant and equipment, estimated useful lives | 3 years | 3 years | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Leasehold Improvement [Member] | Minimum [Member] | ||||
Plant and equipment, estimated useful lives | 42 months | 42 months | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Leasehold Improvement [Member] | Maximum [Member] | ||||
Plant and equipment, estimated useful lives | 52 months | 52 months |
Summary of Significant Accou_22
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Plant and Equipment (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Furniture and Fittings [Member] | ||||
Plant and equipment, estimated useful lives | 3 years | 3 years | ||
Office Equipment [Member] | ||||
Plant and equipment, estimated useful lives | 3 years | 3 years | ||
Leasehold Improvement [Member] | Minimum [Member] | ||||
Plant and equipment, estimated useful lives | 42 months | 42 months | ||
Leasehold Improvement [Member] | Maximum [Member] | ||||
Plant and equipment, estimated useful lives | 52 months | 52 months | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Furniture and Fittings [Member] | ||||
Plant and equipment, estimated useful lives | 3 years | 3 years | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Office Equipment [Member] | ||||
Plant and equipment, estimated useful lives | 3 years | 3 years | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Leasehold Improvement [Member] | Minimum [Member] | ||||
Plant and equipment, estimated useful lives | 42 months | 42 months | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Leasehold Improvement [Member] | Maximum [Member] | ||||
Plant and equipment, estimated useful lives | 52 months | 52 months |
Summary of Significant Accou_23
Summary of Significant Accounting Policies - Schedule of Foreign Currency Translation (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Year End RMB: US$ Exchange Rate [Member] | ||||||
Foreign exchange rate | 6.45488 | 6.52765 | 7.068231 | 6.96676 | ||
Annual Average RMB: US$ Exchange Rate [Member] | ||||||
Foreign exchange rate | 6.50471 | 6.99410 | 7.032406 | 6.89955 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Year End RMB: US$ Exchange Rate [Member] | ||||||
Foreign exchange rate | 7.068231 | 6.96676 | 6.87644 | 6.87644 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Annual Average RMB: US$ Exchange Rate [Member] | ||||||
Foreign exchange rate | 7.032406 | 6.89955 | 6.61464 | 6.61464 |
Summary of Significant Accou_24
Summary of Significant Accounting Policies - Schedule of Foreign Currency Translation (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Year End RMB: US$ Exchange Rate [Member] | ||||||
Foreign exchange rate | 6.45488 | 6.52765 | 7.068231 | 6.96676 | ||
Annual Average RMB: US$ Exchange Rate [Member] | ||||||
Foreign exchange rate | 6.50471 | 6.99410 | 7.032406 | 6.89955 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Year End RMB: US$ Exchange Rate [Member] | ||||||
Foreign exchange rate | 7.068231 | 6.96676 | 6.87644 | 6.87644 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Annual Average RMB: US$ Exchange Rate [Member] | ||||||
Foreign exchange rate | 7.032406 | 6.89955 | 6.61464 | 6.61464 |
Other Receivables - Schedule _4
Other Receivables - Schedule of Other Receivables (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10-K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Security deposit | $ 2,871 | ||||
Value Added Tax receivables | $ 17,797 | 29,477 | 60,946 | ||
Deposit | 65,779 | 65,046 | 56,251 | ||
Others | 12,394 | 1,730 | 14,044 | ||
Other receivables | $ 95,970 | $ 96,253 | 134,112 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||||
Security deposit | 2,871 | $ 2,908 | |||
Value Added Tax receivables | 60,946 | 54,031 | |||
Deposit | 56,251 | 61,747 | |||
Others | 14,044 | ||||
Other receivables | $ 128,773 | $ 134,112 | $ 118,686 |
Plant and Equipment (Details Na
Plant and Equipment (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||
Depreciation expense | $ 70,245 | $ 71,836 | $ 143,571 | $ 111,089 |
Plant and Equipment (Details _2
Plant and Equipment (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||
Depreciation expense | $ 70,245 | $ 71,836 | $ 143,571 | $ 111,089 |
Plant and Equipment - Schedul_4
Plant and Equipment - Schedule of Plant and Equipment (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cost, Beginning balance | $ 3,251 | $ 614,668 | $ 614,668 | ||
Cost, Additions during the year | 11,173 | ||||
Cost, Effects of currency translation | 37 | 148 | |||
Cost, Ending balance | 3,288 | 3,251 | $ 614,668 | ||
Accumulated depreciation, Beginning balance | 2,015 | 247,184 | 247,184 | ||
Accumulated depreciation, Depreciation during the year | 272 | 142,219 | |||
Accumulated depreciation, Effects of currency translation | 37 | 131 | |||
Accumulated depreciation, Ending balance | 2,324 | 2,015 | 247,184 | ||
Net book value | 964 | 1,236 | 367,484 | ||
Furniture and Fittings [Member] | |||||
Cost, Beginning balance | 1,256 | 651 | 651 | ||
Cost, Additions during the year | 560 | ||||
Cost, Effects of currency translation | 14 | 45 | |||
Cost, Ending balance | 1,270 | 1,256 | 651 | ||
Accumulated depreciation, Beginning balance | 754 | 374 | 374 | ||
Accumulated depreciation, Depreciation during the year | 158 | 331 | |||
Accumulated depreciation, Effects of currency translation | 9 | 49 | |||
Accumulated depreciation, Ending balance | 921 | 754 | 374 | ||
Net book value | 349 | 502 | 277 | ||
Office Equipment [Member] | |||||
Cost, Beginning balance | 1,219 | 1,142 | 1,142 | ||
Cost, Additions during the year | |||||
Cost, Effects of currency translation | 14 | 77 | |||
Cost, Ending balance | 1,233 | 1,219 | 1,142 | ||
Accumulated depreciation, Beginning balance | 1,034 | 588 | 588 | ||
Accumulated depreciation, Depreciation during the year | 114 | 379 | |||
Accumulated depreciation, Effects of currency translation | 19 | 67 | |||
Accumulated depreciation, Ending balance | 1,167 | 1,034 | 588 | ||
Net book value | 66 | 185 | 554 | ||
Leasehold Improvement [Member] | |||||
Cost, Beginning balance | 612,507 | 612,507 | |||
Cost, Additions during the year | 10,231 | ||||
Cost, Effects of currency translation | |||||
Cost, Ending balance | 612,507 | ||||
Accumulated depreciation, Beginning balance | 246,222 | 246,222 | |||
Accumulated depreciation, Depreciation during the year | 141,297 | ||||
Accumulated depreciation, Effects of currency translation | |||||
Accumulated depreciation, Ending balance | 246,222 | ||||
Net book value | 366,285 | ||||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | |||||
Cost, Beginning balance | 614,300 | 614,300 | 618,551 | ||
Cost, Additions during the year | 6,177 | 3,832 | |||
Cost, Effects of currency translation | (8,819) | (8,083) | |||
Cost, Ending balance | 611,658 | 614,300 | |||
Accumulated depreciation, Beginning balance | 247,184 | 247,184 | 106,860 | ||
Accumulated depreciation, Depreciation during the year | 70,245 | 143,571 | |||
Accumulated depreciation, Effects of currency translation | (3,548) | (3,247) | |||
Accumulated depreciation, Ending balance | 313,881 | 247,184 | |||
Net book value | 297,777 | 367,116 | $ 511,691 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Furniture and Fittings [Member] | |||||
Cost, Beginning balance | 651 | 651 | 660 | ||
Cost, Additions during the year | 518 | ||||
Cost, Effects of currency translation | (9) | (9) | |||
Cost, Ending balance | 1,160 | 651 | |||
Accumulated depreciation, Beginning balance | 374 | 374 | 159 | ||
Accumulated depreciation, Depreciation during the year | 107 | 220 | |||
Accumulated depreciation, Effects of currency translation | (5) | (5) | |||
Accumulated depreciation, Ending balance | 476 | 374 | |||
Net book value | 684 | 277 | 501 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Office Equipment [Member] | |||||
Cost, Beginning balance | 1,142 | 1,142 | 1,157 | ||
Cost, Additions during the year | |||||
Cost, Effects of currency translation | (16) | (15) | |||
Cost, Ending balance | 1,126 | 1,142 | |||
Accumulated depreciation, Beginning balance | 588 | 588 | 210 | ||
Accumulated depreciation, Depreciation during the year | 188 | 386 | |||
Accumulated depreciation, Effects of currency translation | (8) | (8) | |||
Accumulated depreciation, Ending balance | 768 | 588 | |||
Net book value | 358 | 554 | 947 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Leasehold Improvement [Member] | |||||
Cost, Beginning balance | 612,507 | 612,507 | 616,734 | ||
Cost, Additions during the year | 5,659 | 3,832 | |||
Cost, Effects of currency translation | (8,794) | (8,059) | |||
Cost, Ending balance | 609,372 | 612,507 | |||
Accumulated depreciation, Beginning balance | 246,222 | $ 246,222 | 106,491 | ||
Accumulated depreciation, Depreciation during the year | 69,950 | 142,965 | |||
Accumulated depreciation, Effects of currency translation | (3,535) | (3,234) | |||
Accumulated depreciation, Ending balance | 312,637 | 246,222 | |||
Net book value | $ 296,735 | $ 366,285 | $ 510,243 |
Plant and Equipment - Schedul_5
Plant and Equipment - Schedule of Plant and Equipment (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost, Beginning balance | $ 3,251 | $ 614,668 | $ 614,668 | |
Cost, Additions during the year | 11,173 | |||
Cost, Effects of currency translation | 37 | 148 | ||
Cost, Ending balance | 3,288 | 3,251 | $ 614,668 | |
Accumulated depreciation, Beginning balance | 2,015 | 247,184 | 247,184 | |
Accumulated depreciation, Depreciation during the year | 272 | 142,219 | ||
Accumulated depreciation, Effects of currency translation | 37 | 131 | ||
Accumulated depreciation, Ending balance | 2,324 | 2,015 | 247,184 | |
Net book value | 1,236 | 367,484 | 367,484 | |
Net book value | 964 | 1,236 | 367,484 | |
Furniture and Fittings [Member] | ||||
Cost, Beginning balance | 1,256 | 651 | 651 | |
Cost, Additions during the year | 560 | |||
Cost, Effects of currency translation | 14 | 45 | ||
Cost, Ending balance | 1,270 | 1,256 | 651 | |
Accumulated depreciation, Beginning balance | 754 | 374 | 374 | |
Accumulated depreciation, Depreciation during the year | 158 | 331 | ||
Accumulated depreciation, Effects of currency translation | 9 | 49 | ||
Accumulated depreciation, Ending balance | 921 | 754 | 374 | |
Net book value | 502 | 277 | 277 | |
Net book value | 349 | 502 | 277 | |
Office Equipment [Member] | ||||
Cost, Beginning balance | 1,219 | 1,142 | 1,142 | |
Cost, Additions during the year | ||||
Cost, Effects of currency translation | 14 | 77 | ||
Cost, Ending balance | 1,233 | 1,219 | 1,142 | |
Accumulated depreciation, Beginning balance | 1,034 | 588 | 588 | |
Accumulated depreciation, Depreciation during the year | 114 | 379 | ||
Accumulated depreciation, Effects of currency translation | 19 | 67 | ||
Accumulated depreciation, Ending balance | 1,167 | 1,034 | 588 | |
Net book value | 185 | 554 | 554 | |
Net book value | 66 | 185 | 554 | |
Leasehold Improvement [Member] | ||||
Cost, Beginning balance | 612,507 | 612,507 | ||
Cost, Additions during the year | 10,231 | |||
Cost, Effects of currency translation | ||||
Cost, Ending balance | 612,507 | |||
Accumulated depreciation, Beginning balance | 246,222 | 246,222 | ||
Accumulated depreciation, Depreciation during the year | 141,297 | |||
Accumulated depreciation, Effects of currency translation | ||||
Accumulated depreciation, Ending balance | 246,222 | |||
Net book value | 366,285 | 366,285 | ||
Net book value | 366,285 | |||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||
Cost, Beginning balance | 614,300 | 614,300 | 618,551 | |
Cost, Additions during the year | 6,177 | 3,832 | ||
Cost, Effects of currency translation | (8,819) | (8,083) | ||
Cost, Ending balance | 611,658 | 614,300 | ||
Accumulated depreciation, Beginning balance | 247,184 | 247,184 | 106,860 | |
Accumulated depreciation, Depreciation during the year | 70,245 | 143,571 | ||
Accumulated depreciation, Effects of currency translation | (3,548) | (3,247) | ||
Accumulated depreciation, Ending balance | 313,881 | 247,184 | ||
Net book value | 367,116 | 367,116 | 511,691 | |
Net book value | 297,777 | 367,116 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Furniture and Fittings [Member] | ||||
Cost, Beginning balance | 651 | 651 | 660 | |
Cost, Additions during the year | 518 | |||
Cost, Effects of currency translation | (9) | (9) | ||
Cost, Ending balance | 1,160 | 651 | ||
Accumulated depreciation, Beginning balance | 374 | 374 | 159 | |
Accumulated depreciation, Depreciation during the year | 107 | 220 | ||
Accumulated depreciation, Effects of currency translation | (5) | (5) | ||
Accumulated depreciation, Ending balance | 476 | 374 | ||
Net book value | 277 | 277 | 501 | |
Net book value | 684 | 277 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Office Equipment [Member] | ||||
Cost, Beginning balance | 1,142 | 1,142 | 1,157 | |
Cost, Additions during the year | ||||
Cost, Effects of currency translation | (16) | (15) | ||
Cost, Ending balance | 1,126 | 1,142 | ||
Accumulated depreciation, Beginning balance | 588 | 588 | 210 | |
Accumulated depreciation, Depreciation during the year | 188 | 386 | ||
Accumulated depreciation, Effects of currency translation | (8) | (8) | ||
Accumulated depreciation, Ending balance | 768 | 588 | ||
Net book value | 554 | 554 | 947 | |
Net book value | 358 | 554 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | Leasehold Improvement [Member] | ||||
Cost, Beginning balance | 612,507 | 612,507 | 616,734 | |
Cost, Additions during the year | 5,659 | 3,832 | ||
Cost, Effects of currency translation | (8,794) | (8,059) | ||
Cost, Ending balance | 609,372 | 612,507 | ||
Accumulated depreciation, Beginning balance | 246,222 | 246,222 | 106,491 | |
Accumulated depreciation, Depreciation during the year | 69,950 | 142,965 | ||
Accumulated depreciation, Effects of currency translation | (3,535) | (3,234) | ||
Accumulated depreciation, Ending balance | 312,637 | 246,222 | ||
Net book value | 366,285 | $ 366,285 | 510,243 | |
Net book value | $ 296,735 | $ 366,285 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) | Dec. 31, 2019 |
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | Shenzhen Yeller Investment & Development Co., Ltd [Member] | |
Interest rate | 4.35% |
Related Party Transactions - _7
Related Party Transactions - Schedule of Balances Due to and Due from Related Parties (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Due from related parties | $ 20,140 | $ 64,496 | $ 80,270 | ||
Due to related parties | 553,814 | 374,553 | 195,214 | ||
Huang Xiansheng [Member] | |||||
Due from related parties | $ 20,140 | $ 19,915 | 25,837 | ||
Relationship | Minority shareholder of Shenzhen Yeller | Minority shareholder of Shenzhen Yeller | |||
Huang Yusheng [Member] | |||||
Due to related parties | $ 544,142 | $ 374,553 | 137,791 | ||
Relationship | President of the Company | President of the Company | |||
Shenzhen Yeller Investment & Development Co., Ltd [Member] | |||||
Due from related parties | $ 44,581 | 54,433 | |||
Due to related parties | $ 9,672 | ||||
Relationship | Company owned by President of the Company | Company owned by President of the Company | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||||
Due from related parties | $ 478,085 | 166,393 | |||
Due to related parties | 15,367 | 460,699 | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | Huang Xiansheng [Member] | |||||
Due from related parties | 25,837 | ||||
Due to related parties | 91,617 | ||||
Relationship | Shareholder | Shareholder | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | Huang Yusheng [Member] | |||||
Due from related parties | $ 86,123 | ||||
Due to related parties | $ 15,367 | 219,590 | |||
Relationship | President of the Company | President of the Company | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | Shenzhen Huashengchuang Investment Development Co., Ltd [Member] | |||||
Due from related parties | $ 424,434 | ||||
Relationship | Company owned by President of the Company | ||||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | Shenzhen Yeller Investment & Development Co., Ltd [Member] | |||||
Due from related parties | $ 53,651 | 54,433 | |||
Due to related parties | $ 149,492 | ||||
Relationship | Company owned by President of the Company | Company owned by President of the Company |
Related Party Transactions - _8
Related Party Transactions - Schedule of Balances Due to and Due from Related Parties (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Due from related parties | $ 20,140 | $ 64,496 | $ 80,270 | ||
Due to related parties | 553,814 | 374,553 | 195,214 | ||
Huang Xiansheng [Member] | |||||
Due from related parties | $ 20,140 | $ 19,915 | 25,837 | ||
Relationship | Minority shareholder of Shenzhen Yeller | Minority shareholder of Shenzhen Yeller | |||
Huang Yusheng [Member] | |||||
Due to related parties | $ 544,142 | $ 374,553 | 137,791 | ||
Relationship | President of the Company | President of the Company | |||
Shenzhen Yeller Investment & Development Co., Ltd [Member] | |||||
Due from related parties | $ 44,581 | 54,433 | |||
Due to related parties | $ 9,672 | ||||
Relationship | Company owned by President of the Company | Company owned by President of the Company | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||||
Due from related parties | $ 478,085 | 166,393 | |||
Due to related parties | 15,367 | 460,699 | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | Huang Xiansheng [Member] | |||||
Due from related parties | 25,837 | ||||
Due to related parties | 91,617 | ||||
Relationship | Shareholder | Shareholder | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | Huang Yusheng [Member] | |||||
Due from related parties | $ 86,123 | ||||
Due to related parties | $ 15,367 | 219,590 | |||
Relationship | President of the Company | President of the Company | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | Shenzhen Yeller Investment & Development Co., Ltd [Member] | |||||
Due from related parties | $ 53,651 | $ 54,433 | |||
Due to related parties | $ 149,492 | ||||
Relationship | Company owned by President of the Company | Company owned by President of the Company |
Other Payables - Schedule of Ot
Other Payables - Schedule of Other Payables (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Others | [1] | $ 575,226 | $ 501,678 | $ 284,241 | |
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | |||||
Rental payable | 270,238 | $ 160,496 | |||
Management fee for rental property | 1,538 | ||||
Others | 3,391 | 43,700 | |||
Other payables | $ 275,167 | $ 204,196 | |||
[1] | Others primarily consist of rental payable. |
Income Taxes (Details Narrati_4
Income Taxes (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PRC [Member] | |||||
Income tax rate | 25.00% | 25.00% | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||||
Deferred tax asset | $ 0 | $ 0 | $ 0 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | PRC [Member] | |||||
Income tax rate | 25.00% | 25.00% | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | PRC [Member] | Maximum [Member] | |||||
Net operating losses term | 5 years | 5 years |
Income Taxes (Details Narrati_5
Income Taxes (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PRC [Member] | |||||
Income tax rate | 25.00% | 25.00% | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | |||||
Deferred tax asset | $ 0 | $ 0 | $ 0 | ||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | PRC [Member] | |||||
Income tax rate | 25.00% | 25.00% | |||
Shenzhen Yeller Audio & Video Technology Co., Limited [Member] | PRC [Member] | Maximum [Member] | |||||
Net operating losses term | 5 years | 5 years |
Leases Commitments (Details Nar
Leases Commitments (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-use assets | $ 277,516 | $ 264,164 | ||
Current operating lease liabilities | 248,942 | 177,641 | 102,160 | |
Non-current operating lease liabilities | 181,375 | 166,444 | ||
Subsidy of contractual obligation | 471,901 | 471,901 | ||
Deferred subsidy income | 154,683 | 181,639 | ||
RMB [Member] | ||||
Subsidy of contractual obligation | $ 3,245,000 | $ 3,245,000 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||
Right-of-use assets | $ 209,977 | 264,164 | ||
Current operating lease liabilities | 102,902 | 102,159 | ||
Non-current operating lease liabilities | $ 112,045 | 166,444 | ||
Current operating lease liabilities expiration date | Jul. 17, 2022 | |||
Subsidy of contractual obligation | $ 471,901 | 471,901 | ||
Deferred subsidy income | 220,719 | 277,678 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | RMB [Member] | ||||
Subsidy of contractual obligation | $ 3,245,000 | $ 3,245,000 |
Leases Commitments (Details N_2
Leases Commitments (Details Narrative) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Right-of-use assets | $ 277,516 | $ 264,164 | ||
Current operating lease liabilities | 248,942 | 177,641 | 102,160 | |
Non-current operating lease liabilities | 181,375 | 166,444 | ||
Subsidy of contractual obligation | 471,901 | 471,901 | ||
Deferred subsidy income | 154,683 | 181,639 | ||
RMB [Member] | ||||
Subsidy of contractual obligation | $ 3,245,000 | $ 3,245,000 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||
Right-of-use assets | $ 209,977 | 264,164 | ||
Current operating lease liabilities | 102,902 | 102,159 | ||
Non-current operating lease liabilities | 112,045 | 166,444 | ||
Subsidy of contractual obligation | 471,901 | 471,901 | ||
Deferred subsidy income | 220,719 | 277,678 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | RMB [Member] | ||||
Subsidy of contractual obligation | $ 3,245,000 | $ 3,245,000 |
Leases Commitments - Schedule o
Leases Commitments - Schedule of Future Minimum Payments of Operating Leases (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Within 1 year | $ 259,195 | $ 183,990 | $ 113,291 | |
Total lease payments | 447,924 | 183,990 | 284,921 | |
Less: imputed interest | (17,607) | (6,349) | (16,318) | |
Total lease obligations | 430,317 | 177,641 | 268,603 | |
Less: current obligations | (248,942) | (177,641) | (102,160) | |
Long-term lease obligations | $ 181,375 | 166,444 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||
Within 1 year | $ 113,291 | 113,291 | ||
After 1 year but within 5 years | 122,732 | 171,630 | ||
Total lease payments | 236,023 | 284,921 | ||
Less: imputed interest | (21,076) | (16,318) | ||
Total lease obligations | 214,947 | 268,603 | ||
Less: current obligations | (102,902) | (102,159) | ||
Long-term lease obligations | $ 112,045 | $ 166,444 |
Leases Commitments - Schedule_2
Leases Commitments - Schedule of Future Minimum Payments of Operating Leases (Details) (Shenzhen Yeller Audio & Video Technology Co., Ltd.) (10 K) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Within 1 year | $ 259,195 | $ 183,990 | $ 113,291 | |
Total lease payments | 447,924 | 183,990 | 284,921 | |
Less: imputed interest | (17,607) | (6,349) | (16,318) | |
Total lease obligations | 430,317 | 177,641 | 268,603 | |
Less: current obligations | (248,942) | (177,641) | (102,160) | |
Long-term lease obligations | $ 181,375 | 166,444 | ||
Shenzhen Yeller Audio & Video Technology Co., Ltd. [Member] | ||||
Within 1 year | $ 113,291 | 113,291 | ||
After 1 year but within 5 years | 122,732 | 171,630 | ||
Total lease payments | 236,023 | 284,921 | ||
Less: imputed interest | (21,076) | (16,318) | ||
Total lease obligations | 214,947 | 268,603 | ||
Less: current obligations | (102,902) | (102,159) | ||
Long-term lease obligations | $ 112,045 | $ 166,444 |