Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Apr. 08, 2022 | Jun. 29, 2018 | |
Cover [Abstract] | |||
Entity Registrant Name | EOS INC. | ||
Entity Central Index Key | 0001651958 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 180,065,254 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-55661 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 30-0873246 | ||
Entity Address, Address Line One | 372 Linsen N. Road, Suite 519 | ||
Entity Address, Address Line Two | Zhongshan District | ||
Entity Address, City or Town | Taipei City | ||
Entity Address, Country | TW | ||
Entity Address, Postal Zip Code | 104 | ||
City Area Code | 886 | ||
Local Phone Number | 2-2568-3278 | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 45 | ||
Auditor Name | Onestop Assurance PAC | ||
Auditor Firm ID | 6732 | ||
Auditor Location | Singapore | ||
ICFR Auditor Attestation Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 24,141 | $ 122,482 |
Accounts receivable | 548,201 | 1,116,310 |
Inventory, net | 29,573 | 214,539 |
Advance to suppliers | 280,224 | 191,633 |
Security deposits | 1,127,989 | 1,113,010 |
Prepaid expenses and other current assets | 27,773 | 26,459 |
Total current assets | 2,037,901 | 2,784,433 |
Non-current Assets | ||
Property and equipment, net | 6,739 | 8,175 |
Operating lease right of use asset, net | 85,419 | 1,914 |
Total non-current assets | 92,158 | 10,089 |
Total assets | 2,130,059 | 2,794,522 |
Current Liabilities | ||
Accounts payable | 0 | 18,415 |
Other payable and accrued expenses | 88,040 | 81,360 |
Due to shareholders | 30,858 | 107,791 |
Income tax payable | 55,394 | 26,169 |
Other current liabilities | 500,000 | 250,000 |
Operating lease liabilities - current | 37,779 | 838 |
Short-term loan | 80,047 | 44,457 |
Total current liabilities | 792,118 | 529,030 |
Non-current liabilities | ||
Long-term loan | 204,133 | 122,528 |
Operating lease liabilities – noncurrent | 47,640 | 1,076 |
Total non-current liabilities | 251,773 | 123,604 |
Total liabilities | 1,043,891 | 652,634 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Preferred stock ($0.001 par value, 5,000,000 shares authorized, 1,500,000 and zero shares issued and outstanding as at December 31, 2021 and 2020, respectively) | 1,500 | |
Common stock ($0.001 par value, 575,000,000 shares authorized, 180,065,254 and 74,123 shares issued and outstanding as at December 31, 2021 and 2020, respectively) | 180,065 | 74 |
Additional paid in capital | 29,060 | 186,474 |
Accumulated income | 722,925 | 1,803,259 |
Other comprehensive income | 133,056 | 111,776 |
Total shareholders' equity | 1,066,606 | 2,101,583 |
Non-controlling interest | 19,562 | 40,305 |
Total Equity | 1,086,168 | 2,141,888 |
Total liabilities and shareholders' equity | $ 2,130,059 | $ 2,794,522 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Consolidated Balance Sheets | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 575,000,000 | 575,000,000 |
Common stock, shares issued | 180,065,254 | 74,123 |
Common stock, shares outstanding | 180,065,254 | 74,123 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 1,500,000 | 0 |
Preferred stock, shares outstanding | 1,500,000 | 0 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 518,487 | $ 1,937,786 |
Cost of sales | 312,951 | 308,308 |
Gross profit | 205,536 | 1,629,478 |
Selling, general and administrative expenses | 1,274,616 | 2,371,674 |
Loss from operations | (1,069,080) | (742,196) |
Nonoperating Income (Expense) [Abstract] | ||
Interest income (expense) | (1,797) | (339) |
Other income (expense) | (49,238) | 8,395 |
Gain (loss) on investment in equity securities | 35,142 | (20,750) |
Total other income (expense) | (15,893) | (12,694) |
Loss before income tax provision | (1,084,973) | (754,890) |
Income tax expenses | 16,592 | 16,257 |
Net Loss | (1,101,565) | (771,147) |
Other Comprehensive Income (Loss): | ||
Net income (loss) attributable to non-controlling interests | (21,231) | 3,323 |
Net loss attributable to EOS and subsidiaries | (1,080,334) | (774,470) |
Foreign currency translation adjustment, net of tax | 21,768 | 101,341 |
Comprehensive Loss | $ (1,079,797) | $ (669,806) |
Net loss per share: | ||
Earnings Per Share, Basic and Diluted | $ (0.01) | $ (9.04) |
Weighted average number of common shares: | ||
Basic and diluted | 77,243,336 | 74,123 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Non-controlling Interest |
Balance, shares at Dec. 31, 2019 | 74,123 | 0 | |||||
Balance, amount at Dec. 31, 2019 | $ 2,756,494 | $ 74 | $ 165,226 | $ 2,577,729 | $ 13,465 | ||
Balance, shares at Dec. 31, 2019 | 74,123 | 0 | |||||
Balance, amount at Dec. 31, 2019 | 2,756,494 | $ 74 | 165,226 | 2,577,729 | 13,465 | ||
Contributions from non-controlling interest | 55,200 | 21,248 | 33,952 | ||||
Foreign Currency Translation Adjustment | 101,341 | 98,311 | 3,030 | ||||
Net income (loss) | (771,147) | (774,470) | 3,323 | ||||
Balance, shares at Dec. 31, 2020 | 74,123 | 0 | |||||
Balance, amount at Dec. 31, 2020 | 2,141,888 | $ 74 | 186,474 | 1,803,259 | 111,776 | 40,305 | |
Foreign Currency Translation Adjustment | 21,768 | 21,280 | 488 | ||||
Net income (loss) | (1,101,565) | (1,080,334) | (21,231) | ||||
Cancellation of common stock, shares | (10,000) | ||||||
Cancellation of common stock, amount | (35,142) | $ (10) | (35,132) | ||||
Reverse Stock Split Adjustment, shares | 1,131 | ||||||
Reverse Stock Split Adjustment, amount | $ 1 | (1) | |||||
Shares Issued for Liability Converted, shares | 90,000,000 | ||||||
Shares Issued for Liability Converted, amount | 59,219 | $ 90,000 | (30,781) | ||||
Shares Issued for minority controlling interests of its subsidiary, shares | 90,000,000 | ||||||
Shares Issued for minority controlling interests of its subsidiary, amount | $ 90,000 | (90,000) | |||||
Issuance of Preferred Stock to related party, shares | 1,500,000 | ||||||
Issuance of Preferred Stock to related party, amount | $ 1,500 | (1,500) | |||||
Balance, shares at Dec. 31, 2021 | 180,065,254 | 1,500,000 | |||||
Balance, amount at Dec. 31, 2021 | $ 1,086,168 | $ 180,065 | $ 1,500 | $ 29,060 | $ 722,925 | $ 133,056 | $ 19,562 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net loss | $ (1,101,565) | $ (771,147) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Bad debt expenses | 233,907 | 1,339,175 |
Depreciation | 1,887 | 2,269 |
Amortization of right-of-use asset | 27,963 | 780 |
Realized (gain) loss from investment | (35,142) | 20,750 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 341,157 | (228,242) |
Decrease (increase) in inventory | 186,455 | (193,876) |
Decrease (increase) in advance to suppliers | (85,318) | 139,772 |
Decrease (increase) in security deposits and other assets | (950) | (937,531) |
Increase (decrease) in accounts payable | (18,524) | 15,483 |
Increase (decrease) in accrued expenses | 255,542 | 252,208 |
Increase (decrease) in income tax payable | 28,297 | (1,308) |
Increase (decrease) in operating lease liabilities | (27,963) | (780) |
Net cash used in operating activities | (194,254) | (362,447) |
Cash Flows from Investing activities | ||
Purchase of equipment | (352) | (2,218) |
Net cash used in investing activities | (352) | (2,218) |
Cash Flows from Financing activities | ||
Proceeds from (Payments to) Noncontrolling Interests | 33,952 | |
Proceeds from a related party | 216,467 | 144,188 |
Repayment to a related party | (235,289) | (137,416) |
Repayment to borrowings | (64,971) | (10,515) |
Proceeds from borrowings | 179,064 | 169,757 |
Net cash provided by financing activities | 95,271 | 199,966 |
Effect of exchange rate changes on cash and cash equivalents | 994 | (8,413) |
Net decrease in cash and cash equivalents | (98,341) | (173,112) |
Cash and Cash Equivalents [Abstract] | ||
Beginning | 122,482 | 295,594 |
Ending | 24,141 | 122,482 |
Cash paid during the periods for: | ||
Interest | 3,142 | 494 |
Income taxes | 16,592 | 16,257 |
Noncash Investing and Financing Items [Abstract] | ||
Related party debt converted to Common stock | 59,219 | |
Issuance of Common Stock for minority controlling interests of its subsidiary | 90,000 | |
Issuance of Preferred Stock to related party | $ 1,500 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES | Note 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES Organization EOS Inc. was incorporated on April 3, 2015 in the State of Nevada. The Company’s business plan is to market and distribute skin care products, including masks and serums. On November 18, 2016, the Company has set up a wholly-owned subsidiary in Taiwan to assist the Company to promote the business in Taiwan. Emperor Star International Trade Co., Ltd., (“Emperor Star”), was incorporated on November 16, 2015 under the laws of Taiwan. Emperor Star is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifiers. On May 3, 2017, the Company entered into and closed a Share Purchase and Sale Agreement (the “Purchase Agreement”) with Emperor Star and the shareholder of Emperor Star to acquire all issued and outstanding shares of Emperor Star in consideration of $30,562 in cash. As a result of the Purchase, Emperor Star becomes the Company’s wholly owned subsidiary. Upon consummation of the Purchase, the Company has assumed the business of Emperor Star and ceased to be a shell company. On September 20, 2018, the Company set up another wholly-owned subsidiary, EOS International Inc. (“EOS(BVI)”), under the laws of British Virgin Islands. EOS(BVI) is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifiers. On March 1, 2019, EOS(BVI) set up a wholly-owned subsidiary, Shanghai Maosong Co., Ltd (“Maosong”), under the laws of People’s Republic of China. Maosong is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifiers in China. As of the date of this report, Maosong has a registered capital of USD $100,000, but no capital has actually been paid into Maosong. On June 2, 2020, EOS(BVI) 83.33% owner, and Shanghai Qifan Qiye Management Co., Ltd. (“Qifan”) 16.67% owner of Maosong resolute to change the registered capital of Maosong to RMB 1,200,000,000 (1.2 billion) and that EOS to contribute certain Intellectual Property as registered capital of Shanghai Maosong. Intellectual Property owned by EOS International Inc was valued at RMB 1,000,000,000 (1 billion) and Intellectual Property owned by Qifan was valued at RMB 200,000,000 (200 million). On July 13, 2021, EOS(BVI), MaoSong, and Qifan entered into a Shareholder Agreement where Qifan (i) delegate its 16.67% equity voting rights, powers, or benefits in Maosong to EOS(BVI); (ii) grant EOS(BVI) an irrevocable, unconditional, exclusive option to purchase Maosong’s equity interest; (iii) the right to receive any proceeds from the Maosong’s Equity Interest; (iv) pledge its existing or any prospective Maosong equity interest to EOS Int’l; as a result EOS(BVI) retains 100% control of MaoSong and the 16.67% noncontrolling interest are consolidated. Principles of Consolidation The accompanying consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, British Virgin Islands, and People’s Republic of China, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. All assets and liabilities of Emperor Star were transferred to the Company at their respective carrying amounts on the date of transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the consolidated financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The nature of and effects on earnings per share (EPS) of non-recurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated and EPS amounts have been recast to include the earnings (or losses) of the transferred net assets. The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars and the subsidiary in People’s Republic of China is the Chinese Yuan, or Renminbi; however, the accompanying consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, “NT$” and “NT dollars” mean New Taiwan dollars, and “RMB” means Chinese Yuan, or Renminbi Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. Classification Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net income nor retained earnings. Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less. Accounts Receivable Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. A bad debt expense is recognized in the statement of comprehensive income. However, if the payment received after it has been designated as uncollectible, bad debt recovery is recognized in the statement of comprehensive income. Inventory Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence. Property and Equipment Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $1,887 and $2,269 for the years ended December 31, 2021 and 2020, respectively. Impairment of Long-Lived Assets The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long-lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long-lived assets currently exist as of December 31, 2021 and 2020. Long-term Equity Investment The Company acquires equity investment to promote business and strategic objectives. The Company accounts for non-marketable equity and other equity investments for which the Company does not have control over the investees as: Equity method investments when the Company has the ability to exercise significant influence, but not control, over the investee. Its proportionate share of the income or loss is recognized monthly and is recorded in gain (loss) on equity investments. Non-marketable cost method investments when the equity method does not apply. Significant judgment is required to identify whether an impairment exists in the valuation of the Company’s non-marketable equity investments, and therefore the Company considers this a critical accounting estimate. Its yearly analysis considers both qualitative and quantitative factors that may have a significant impact on the investee’s fair value. Qualitative analysis of its investments involves understanding the financial performance and near-term prospects of the investee, changes in general market conditions in the investee’s industry or geographic area, and the management and governance structure of the investee. Quantitative assessments of the fair value of its investments are developed using the market and income approaches. The market approach includes the use of comparable financial metrics of private and public companies and recent financing rounds. The income approach includes the use of a discounted cash flow model, which requires significant estimates regarding the investees’ revenue, costs, and discount rates. The Company’s assessment of these factors in determining whether an impairment exists could change in the future due to new developments or changes in applied assumptions. Other-Than-Temporary Impairment The Company’s long-term equity investments are subject to a periodic impairment review. Impairments affect earnings as follows: Marketable equity securities include the consideration of general market conditions, the duration and extent to which the fair value is below cost, and the Company’s ability and intent to hold the investment for a sufficient period of time to allow for recovery of value in the foreseeable future. The Company also considers specific adverse conditions related to the financial health of, and the business outlook for, the investee, which may include industry and sector performance, changes in technology, operational and financing cash flow factors, and changes in the investee’s credit rating. The Company records other-than-temporary impairments on marketable equity securities and marketable equity method investments in gain (loss) on equity investments. Non-marketable equity investments based on the Company’s assessment of the severity and duration of the impairment, and qualitative and quantitative analysis of the operating performance of the investee; adverse changes in market conditions and the regulatory or economic environment; changes in operating structure or management of the investee; additional funding requirements; and the investee’s ability to remain in business. A series of operating losses of an investee or other factors may indicate that a decrease in value of the investment has occurred that is other than temporary and that shall be recognized even though the decrease in value is in excess of what would otherwise be recognized by application of the equity method. A loss in value of an investment that is other than a temporary decline shall be recognized. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. The Company records other-than-temporary impairments for non-marketable cost method investments and equity method investments in gain (loss) on equity investments. Revenue Recognition Pursuant to ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration the Company is entitled to in exchange for the goods or services the Company transfers to the customers. At inception of the contract, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Merchandise sales: The Company recognizes sales revenues from merchandise sales when customers obtain control of the Company’s products, which typically occurs upon delivery to customer. Merchandise sales revenues are recorded at the sales price, or “transaction price”. Software sales: The Company does not develop the software products on its own. When the Company receives a purchase order from the customer, the Company would engage with the third-party software company to customize and develop the software products. The Company recognizes software revenues upon completion of the installation and testing, and transfer the control of the software products to the customer. Software revenues are recorded at the fixed sales price, or “transaction price”, pursuant to the sales contracts. The Company may also charge the customer maintenance service fees on a straight-line basis over the service period pursuant to the sales contract. The Company concluded that the performance obligation for the maintenance service is distinct. Therefore, such maintenance service revenue can be separated from other elements in the arrangement. Trade discount and allowances: The Company generally does not provide invoice discounts on product sales to its customers for prompt payment. Product returns : The Company generally does not provide customers with the right to return a product for a full or partial refund, a credit, or an exchange for another product. To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal. The following tables provide details of revenue by major products and by geography. Revenue by Major Products For the year ended December 31, 2021: Nutrition supplement $ 68,840 Water purifier machine 107,826 Automobile carbon reduction machine 305,868 Software 35,953 Total $ 518,487 For the year ended December 31, 2020: Nutrition supplement $ 73,317 Water purifier machine 1,376,795 Automobile carbon reduction machine 400,061 Software 87,613 Total $ 1,937,786 Revenue by Geography For the year ended December 31, 2021: Asia Pacific $ 518,487 Total $ 518,487 For the year ended December 31, 2020: Asia Pacific $ 1,937,786 Total $ 1,937,786 Leases The Company adopted FASB Accounting Standards Codification, Topic 842, Leases (“ASC 842”) using the modified retrospective approach, electing the practical expedient that allows the Company not to restate its comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption. For the comparative periods prior to adoption, the Company presented the disclosures which were required under ASC 842. The new leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities represent the Company’s obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. The Company’s future minimum based payments used to determine the Company’s lease liabilities mainly include minimum based rent payments. As most of Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. In addition, the adoption of the standard did not have a material impact on the Company’s results of operations or cash flows. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in Selling, general and administrative expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Advertising Costs Advertising costs are expensed at the time such advertising commences. Advertising expenses were $399 and $22,840 for the year ended December 31, 2021 and 2020, respectively. Post-retirement and Post-employment Benefits The Company’s subsidiaries in Taiwan adopted the government mandated defined contribution plan pursuant to the Taiwan Labor Pension Act (the “Act”). Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker’s monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $5,873 and $5,377 for the years ended December 31, 2021 and 2020, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits. Fair Value Measurements FASB ASC 820, “Fair Value Measurements” defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows: Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, accounts receivable, inventory, advance to suppliers, prepaid expenses, accounts payable, accrued expenses, and due to shareholders, approximate fair value because of to their relatively short maturities. E ar nings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each year. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized. Concentration of Credit Risk Cash and cash equivalents , respectively. The Company has not experienced any losses in such accounts. Customers For the year ended December 31, 2021, two customers accounted for more than 10% of the Company’s total revenues, representing approximately 56% and 39% of its total revenues, and 84% and 11% of accounts receivable in aggregate at December 31, 2021. Customer Net sales for the year ended December 31, 2021 Accounts receivable as of December 31, 2021 A $ 290,749 $ 382,189 B $ 204,018 $ 134,655 For the year ended December 31, 2020, one customer accounted for more than 10% of the Company’s total revenues, representing approximately 88% of its total revenues, and 95% of accounts receivable in aggregate at December 31, 2020. Customer Net sales for the year ended December 31, 2020 Accounts receivable as of December, 2020 A $ 1,714,737 $ 1,054,412 Suppliers For the year ended December 31, 2021, three suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 26%, 57% and 10% of total net purchase, and 0% of accounts payable in aggregate at December 31, 2021, respectively: Supplier Net purchase for the year ended December 31, 2021 Accounts payable balance as of December 31, 2021 A $ - $ - B $ 32,876 $ - C $ - $ - D $ - $ - E $ 71,505 $ - F $ 12,893 $ - For the year ended December 31, 2020, four suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 36%, 23%, 22% and 10% of total net purchase, and 0%, 98%, 0% and 0% of accounts payable in aggregate at December 31, 2020, respectively: Supplier Net purchase for the year ended December 31, 2020 Accounts payable balance as of December 31, 2020 A $ 182,634 $ - B $ 114,243 $ 18,079 C $ 111,919 $ - D $ 49,230 $ - * Related party transactions (See Note 5). Foreign-currency Transactions Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) and Renminbi (“RMB”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars and Renminbi, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under stockholders’ equity. Translation Adjustment The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed in New Taiwan Dollar (“NTD”) and Renminbi (“RMB”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, “Foreign Currency Matters”, with the NTD and RMB as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, common stock and additional paid-in capital are translated at the historical rates, and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under accumulated other comprehensive income (loss) as a component of stockholders’ equity. Comprehensive Income (loss) Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss). Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” This pronouncement, along with subsequent ASUs issued to clarify provisions of ASU 2016-13, changes the impairment model for most financial assets and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. In developing the estimate for lifetime expected credit loss, entities must incorporate historical experience, current conditions, and reasonable and supportable forecasts. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. On November 19, 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), finalized various effective date delays for private companies, not-for-profit organizations, and certain smaller reporting companies applying the credit losses (CECL), the revised effective date is January 1 , 2023. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed financial statements. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASE | Note 2. LEASE As of December 31, 2021, the Company has two ope rating lease agreement for its car with remaining lease terms of 37 months and photocopier with remaining lease terms of 15 months, respectively. The Company does not have any other leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term in Taiwan which is approximately 2.44%. Operating lease expenses were $54,482 and $ 24,304 The components of lease expense and supplemental cash flow information related to leases for the year ended are as follows: Year Ended Year Ended Lease Cost December 31, December 31, Operating lease cost (included in general and administrative expenses in the Company’s statement of operations) $ 29,582 $ 834 Other Information Right-of-use assets obtained in exchange for new operating leases liabilities 113,592 2,731 Cash paid for amounts included in the measurement of lease liabilities for the year ended $ 29,582 $ 834 Weighted average remaining lease term – operating leases (in years) 3.08 2.25 Average discount rate – operating lease 2.44 % 2.44 % The supplemental balance sheet information related to leases for the period is as follows: As of As of December 31, 2021 December 31, 2020 Operating leases Right-of-use assets $ 85,419 $ 1,914 Operating lease liabilities $ 85,419 $ 1,914 The undiscounted future minimum lease payment schedule as follows: For the years ending December 31, 2022 39,442 2023 38,777 2024 9,639 Total lease payments 87,858 Less: Interest (2,439 ) Total 85,419 |
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Investments [Abstract] | |
LONG-TERM INVESTMENTS | Note 3. LONG-TERM INVESTMENT On January 15, 2019, the Company, A-Best Wire Harness & Components Co., Ltd. (“A-Best” or the “Investee”), a company formed under the laws of Taiwan, and Mr. Ing-Ming Lai, a Taiwanese individual and the majority shareholder of A-Best, entered into an investment cooperation agreement (the “Investment Cooperation Agreement”), pursuant to which the Company issued 10 million shares of its common stock to Mr. Ing-Ming Lai to purchase twenty percent (20%) of the issued and outstanding equity in A-Best. On May 24, 2019, the Company consummated the shareholder registration of A-Best with the Investment Commission of Ministry of Economic Affairs of Taiwan and issued 10 million shares of its common stock to Mr. Ing-Ming Lai to acquire 20% of the issued and outstanding equity in A-Best. On March 2, 2020, the Company, A-Best, and Ing-Ming Lai, (collectively, the “Parties”) entered into a strategic alliance agreement (the “Strategic Alliance Agreement”), pursuant to which the Parties redefined their cooperation with respect to the sales and distribution of A-Best’s micro-ceramic speakers. In accordance with the Strategic Alliance Agreement, A-Best, Mr. Ing-Ming Lai and the Company terminated the Investment Cooperation Agreement dated January 15, 2019 entered by and among the Parties and as a result the Company agreed to return 20% of the equity interest in A-Best to Mr. Ing-Ming Lai, which was valued at approximately $35,142 by the Parties. Furthermore, subject to the terms and conditions of the Strategic Alliance Agreement, A-Best has granted the Company the exclusive sale and distribution right of A-Best’s micro-ceramic speakers in the world for one (1) year (the “Term”), which may be renewed with mutual consent of the Parties two months prior to the expiration of the Term, while A-Best retains its own right to sell and distribute the micro-ceramic speakers on its own. In consideration for the exclusive distribution right of A-Best’s speakers under the Strategic Alliance Agreement, the Company agreed to have A-Best keep the Company’s 10,000,000 shares of common stock issued under the Investment Cooperation Agreement and the Company may keep the revenue and profits generated from the sale of A-Best speakers until the total revenue from such speakers reaches $15 million U.S. dollars. On March 2, 2020, the Company returned 20% equity interest in A-Best to Mr. Ing-Ming Lai pursuant to the Strategic Alliance Agreement. As of April 22, 2020, the Company holds 20% equity interest in A-Best and uses equity method to account for its equity investment as prescribed in ASC 323, Investments—Equity Method and Joint Ventures (“ASC 323”). Equity method adjustments include the Company’s proportionate share of investee’s income or loss and other adjustments required by the equity method. For the period from January 1, 2020, to April 22, 2020, the share of loss from investment accounted for using equity method was $2,848. As a result of the return of equity interest, the Company also recognized loss on investment in equity securities of $17,902 for the same period. Summarized financial information for the Company’s equity method investee, A-Best, is as follows: Balance Sheets April 22, 2020 Current assets $ 38,303 Noncurrent assets 779 Current liabilities 1,406,166 Shareholders’ deficit (1,367,084 ) Statement of Operation For the period from January 1, 2020 to April 22, 2020. Net sales $ 854 Gross profit 498 Net loss (14,240 ) Share of loss from investment accounted for using equity method (2,848 ) On May 26, 2020, EOS Inc. increased its investment in Emperor Star by $134,004 (NTD$4,000,000). The Company also received the contributions to Emperor Star from non-controlling interests in the amount of $33,398 (NTD$1,000,000). As a result, the Company owns 83% equity interest of Emperor Star as of December 31, 2020, which is no longer a wholly-owned subsidiary. On April 12, 2021, A-Best, and Mr. Ing-Ming Lai entered into a termination agreement (the “Termination Agreement”) to terminate the agreement of Strategic Alliance Agreement dated March 2, 2020. In the agreement, Ing-Ming Lai has proceeded to return a total of 10,000,000 shares in EOS Inc, back to the Company. The Board of Directors of this Corporation authorized the return of the 10,000,000 EOSS shares from Ing Ming Lai. |
SECURITY DEPOSITS
SECURITY DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
SECURITY DEPOSITS | Note 4. SECURITY DEPOSITS On November 21, 2019, the Company and Shuang Hua International Culture Media Co, Ltd. (“Shuang Hua”), a corporation formed under laws of Taiwan, entered into an exclusive copyright and distribution agreement (the “Agreement”), pursuant to which, subject to the terms and condition therein, Shuang Hua granted the Company an exclusive right to produce, market, distribute and sell the bilingual films and electronic books of which the copyrights owned by Shuang Hua. In accordance to the agreement, the Company shall pay Shuang Hua a refundable deposit of in the aggregate amount of $2,894,000, before December 31, 2021. As of December 31, 2021 and December 31, 2020, the Company has paid $1,030,000 and $1,030,000 to Shuang Hua, respectively, and are recorded as security deposits. Due to Covid-19 in 2020, the Company has not started its business plan with the exclusive copyright and distribution agreement. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 5. RELATED PARTY TRANSACTIONS Related parties of the Company during the year ended December 31, 2021 and 2020 consist of the following: Name of Related Party Nature of Relationship Yu Cheng Yang Majority Shareholder, Director and Officer of the Company Co-Innovation Group Limited Company under control of Yu Cheng Yang World Capital Holding Limited Company under control by Shanghai Qifan Qiye Management Co., Ltd.’s shareholders, former non-controlling interest of the Company Due to shareholders The Company obtained advanced funds from its directors and shareholders for working capital purposes. As of December 31, 2021 and 2020 there were $30,858 and $107,791 advance outstanding, respectively. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after thirty days of written notice by the director and shareholder. On July 8, 2021, the Company issued the 90,000,000 shares of common stock to repayment of $59,219 owed to Mr. Yang. Mr. Yang advanced $216,467 to the Company as working capital, and the Company repaid $294,508 to Mr. Yang for the year ended December 31, 2021. Mr. Yang advanced $144,188 to the Company as working capital, and the Company repaid $137,416 to Mr. Yang for the year ended December 31, 2020. |
TERM LOAN
TERM LOAN | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
TERM LOAN | Note 6. TERM LOAN Loan from First Commercial Bank On September 30, 2020, TWD 3,000,000 (approximately $107,750) term loan was granted to the Company for working capital with repayment period of 60 months. The term loan is subject to an interest charge at 1% per annum for the first 9 months of the term loan; interest charges on the term loan from 10th to 60th is 3.5% per annum. On September 30, 2020, TWD 2,000,000 (approximately $71,833) term loan was granted to the Company for employee salary with repayment period of 30 months. The term loan is subject to an interest charge at 1.5% per annum for the first 9 months of the term loan; interest charges on the term loan from 10th to 60th is 1.845% per annum. Loan from Bank of Taiwan On May 7, 2021, TWD 4,000,000 (approximately $143,666) term loan was granted to the Company for employee salary with repayment period of 60 months. The term loan is subject to an interest charge at 1% per annum for the first 8 months of the term loan; interest charges on the term loan from 9th to 60th is 1.9% per annum. On May 7, 2021, TWD 1,000,000 (approximately $35,917) term loan was granted to the Company for employee salary with repayment period of 60 months. The term loan is subject to an interest charge at 1.5% per annum for the first 8 months of the term loan; interest charges on the term loan from 9th to 60th is 2% per annum. As of December 31, 2021, the outstanding balance of the term loan is $284,180, of which $80,047 is due within one year and classified as short term, and $204,133 is due after one year, and has classified as long term. As of December 31, 2020, the outstanding balance of the term loan is $166,985, of which $44,457 is due within one year and classified as short term, and $122,528 is due after one year, and has classified as long term. Interest expenses were $3,142 and $494 for the year ended December 31, 2021 and 2020, respectively. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | Note 7. STOCKHOLDERS’ EQUITY Preferred Stock On July 8, 2021, the board of directors of the Company amended its stock designation and the Company is authorized to issue 5,000,000 shares of Series A Preferred Stock with par value $0.001. Each stock is entitled to 1,000 votes of common stock without dividend rights. On July 8, 2021, the Company issued 1,500,000 shares of Series A Preferred Stock to Co-Innovation Group Limited for proceeds of $1,500, the amount is recorded as a reduction to additional paid-in capital of $1,500. Common Stock On August 18, 2021, the Company completed and closed a series of transactions to reorganize the Company’s structure and to develop its business by acquiring certain minority control interest of its subsidiary and intellectual properties. Pursuant to the Intellectual Property Transfer Agreement, the Company to issue 75,000,000 shares of Common Stock to the transferors for the intellectual properties in consideration of the transfer. Pursuant to the Shareholders’ Agreement of Shanghai Maosong Trading Co., Ltd and Equity Pledge Agreements, the Company issue d On July 8, 2021, the Company issued 75,000,000 shares of Common Stock at $0.001 per share to convert outstanding debt owed to Co-Innovation Group Limited in the amount of $75,000. On July 8, 2021, the Company issued 15,000,000 shares of Common Stock at $0.001 per share to convert outstanding debt owed to World Capital Holding Ltd in the amount of $15,000. On April 12, 2021, A-Best, and Mr. Ing-Ming Lai entered into a termination agreement (the “Termination Agreement”) to terminate the agreement of Strategic Alliance Agreement dated March 2, 2020. In the agreement, Ing-Ming Lai has proceeded to return a total of 10,000,000 On March 31, 2021, the Company’s board of directors and stockholders authorized a reverse stock split of its outstanding common stock at a ratio of 1-for-1000 without any change in the par value per share which became effective on April 7, 2021 upon approval by FINRA. The number of shares and price per share in the financial statements have been retrospectively adjusted accordingly to reflect this reverse stock split. On March 16, 2021, the authorized shares of common stock were increased from 75,000,000 to 575,000,000 shares and the par value remains at $0.001. On June 1, 2020, the Company and Fortune King entered into a sales collaboration agreement (the “Sales Collaboration Agreement”), pursuant to which, subject to the terms and condition therein, Fortune King agreed to provide promotional and marketing service of the Company’s products within six years from January 2020, to December 2025. Fortune King is obligated to perform such service regardless of whether the Company sells products to Fortune King during the designated period. In accordance with the Sales Collaboration Agreement and in consideration for the service provided by Fortune King, the Company shall issue 3,000,000 shares of common stock to Fortune King for the promotional and marketing service of $1,500,000. The 3,000,000 shares were issued on December 29, 2020. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 8. INCOME TAXES United States EOS, Inc. is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the period. As of December 31, 2021, the Company had net operating loss carry forwards of $ 1,101,565 British Virgin Islands EOS International Inc. is incorporated in British Virgin Islands and are not required to pay income tax. Taiwan The subsidiary of EOS Inc. and Emperor Star is incorporated in Taiwan. According to the amendments to the “Taiwan Income Tax Act” enacted by the office of the President of Taiwan on February 7, 2018, statutory income tax rate increased from 17% to 20% and undistributed earning tax decreased from 10% to 5%, effective from January 1, 2018. When the net profit is less than or equal to 30 million Taiwan dollars, income tax accrual amount is based on the gross profit rate of the industry according to the tax law in Taiwan. People’s Republic of China (“PRC”) Under the Enterprise Income Tax (“EIT”) Law of the PRC, the standard EIT rate is 25%. The PRC subsidiary of the Company is subject to PRC income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which they operate. No provision for income taxes have been made as Maosong had no taxable income as of and for the year ended December 31, 2021. Provision for income tax consists of the following: For the Years Ended December 31, 2021 2020 Current income tax U.S. $ - $ - Taiwan 16,592 16,257 PRC - - Sub total 16,592 16,257 Deferred income tax Deferred tax assets for NOL carry forwards 58,003 61,408 Valuation allowance (58,003 (61,408 Net changes in deferred income tax (benefit) - - Total income tax provision $ 16,592 $ 16,257 The net loss before income taxes and its provision for income taxes as follows: For the Years Ended December 31,2021 December 31,2020 Net loss before income tax (1,084,973 (754,890 Statutory tax rate 20 % 20 % Income tax provision (216,995 ) (150,978 ) Valuation allowance 58,003 61,408 Non-taxable income 180,283 109,061 Other, primarily the difference in tax rates (4,699 (3,234 Income tax provision, net 16,592 16,257 Significant components of the Company’s deferred taxes as of December 31, 2021 and 2020 were as follows: December 31, December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 235,488 $ 177,485 Less: Valuation allowance (235,488 ) (177,485 ) Deferred tax assets, net $ - $ - |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 9. COMMITMENTS AND CONTINGENCIES Copyright and Distribution Agreement On November 21, 2019, the Company and Shuang Hua International Culture Media Co, Ltd. (“Shuang Hua”), a corporation formed under laws of Taiwan, entered into an exclusive copyright and distribution agreement (the “Agreement”), pursuant to which, subject to the terms and condition therein, Shuang Hua granted the Company an exclusive right to produce, market, distribute and sell the bilingual films and electronic books of which the copyrights owned by Shuang Hua. In accordance to the agreement, the Company shall pay Shuang Hua a refundable deposit of in the aggregate amount of $2,894,000, before December 31, 2021. As of December 31, 2021, the Company has paid $1,030,000 to Shuang Hua and remaining outstanding payable of $1,864,000 to Shuang Hua . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 10. SUBSEQUENT EVENTS Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of December 31, 2021 have been incorporated into these consolidated financial statements and there are no other subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization | Organization EOS Inc. was incorporated on April 3, 2015 in the State of Nevada. The Company’s business plan is to market and distribute skin care products, including masks and serums. On November 18, 2016, the Company has set up a wholly-owned subsidiary in Taiwan to assist the Company to promote the business in Taiwan. Emperor Star International Trade Co., Ltd., (“Emperor Star”), was incorporated on November 16, 2015 under the laws of Taiwan. Emperor Star is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifiers. On May 3, 2017, the Company entered into and closed a Share Purchase and Sale Agreement (the “Purchase Agreement”) with Emperor Star and the shareholder of Emperor Star to acquire all issued and outstanding shares of Emperor Star in consideration of $30,562 in cash. As a result of the Purchase, Emperor Star becomes the Company’s wholly owned subsidiary. Upon consummation of the Purchase, the Company has assumed the business of Emperor Star and ceased to be a shell company. On September 20, 2018, the Company set up another wholly-owned subsidiary, EOS International Inc. (“EOS(BVI)”), under the laws of British Virgin Islands. EOS(BVI) is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifiers. On March 1, 2019, EOS(BVI) set up a wholly-owned subsidiary, Shanghai Maosong Co., Ltd (“Maosong”), under the laws of People’s Republic of China. Maosong is in the business of marketing and distribution of various products, including nutrition supplements, skin care products, and water purifiers in China. As of the date of this report, Maosong has a registered capital of USD $100,000, but no capital has actually been paid into Maosong. On June 2, 2020, EOS(BVI) 83.33% owner, and Shanghai Qifan Qiye Management Co., Ltd. (“Qifan”) 16.67% owner of Maosong resolute to change the registered capital of Maosong to RMB 1,200,000,000 (1.2 billion) and that EOS to contribute certain Intellectual Property as registered capital of Shanghai Maosong. Intellectual Property owned by EOS International Inc was valued at RMB 1,000,000,000 (1 billion) and Intellectual Property owned by Qifan was valued at RMB 200,000,000 (200 million). On July 13, 2021, EOS(BVI), MaoSong, and Qifan entered into a Shareholder Agreement where Qifan (i) delegate its 16.67% equity voting rights, powers, or benefits in Maosong to EOS(BVI); (ii) grant EOS(BVI) an irrevocable, unconditional, exclusive option to purchase Maosong’s equity interest; (iii) the right to receive any proceeds from the Maosong’s Equity Interest; (iv) pledge its existing or any prospective Maosong equity interest to EOS Int’l; as a result EOS(BVI) retains 100% control of MaoSong and the 16.67% noncontrolling interest are consolidated. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements, including the accounts of EOS Inc. and its wholly owned subsidiaries in Taiwan, British Virgin Islands, and People’s Republic of China, have been prepared in conformity with accounting principles generally accepted in the United States of America. Since the Company and Emperor Star are entities under common control prior to the acquisition of Emperor Star, the transaction is accounted for as a restructuring transaction. All assets and liabilities of Emperor Star were transferred to the Company at their respective carrying amounts on the date of transaction. The Company has recast prior period financial statements to reflect the conveyance of Emperor Star’s common shares as if the restructuring transaction had occurred as of the earliest date of the consolidated financial statements. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The nature of and effects on earnings per share (EPS) of non-recurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated and EPS amounts have been recast to include the earnings (or losses) of the transferred net assets. The functional currency of the subsidiaries in Taiwan is the New Taiwan dollars and the subsidiary in People’s Republic of China is the Chinese Yuan, or Renminbi; however, the accompanying consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, “NT$” and “NT dollars” mean New Taiwan dollars, and “RMB” means Chinese Yuan, or Renminbi |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassification, Comparability Adjustment [Policy Text Block] | Classification Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net income nor retained earnings. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less. |
Accounts Receivable [Policy Text Block] | Accounts Receivable Accounts receivable are stated at carrying value less estimates made for doubtful receivables. An allowance for impairment of trade receivables is established if the collection of a receivable becomes doubtful. Such receivable becomes doubtful when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. A bad debt expense is recognized in the statement of comprehensive income. However, if the payment received after it has been designated as uncollectible, bad debt recovery is recognized in the statement of comprehensive income. |
Inventory, Policy [Policy Text Block] | Inventory Inventory is stated at the lower of cost and net realizable value. Net realizable value (NRV) is defined as estimated selling prices less costs of completion, disposal, and transportation. Inventory consists mainly of finished goods held for resale. Cost is determined on a weighted average cost method. The Company periodically reviews the age and turnover of its inventory to determine whether any inventory has become obsolete or has declined in value, and incurs a charge to operations for known and anticipated inventory obsolescence. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment is carried at cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property and equipment under capital leases, generally is five years. Depreciation expense is $1,887 and $2,269 for the years ended December 31, 2021 and 2020, respectively. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long-lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell. Management has determined that no impairments of long-lived assets currently exist as of December 31, 2021 and 2020. |
Equity Method Investments [Policy Text Block] | Long-term Equity Investment The Company acquires equity investment to promote business and strategic objectives. The Company accounts for non-marketable equity and other equity investments for which the Company does not have control over the investees as: Equity method investments when the Company has the ability to exercise significant influence, but not control, over the investee. Its proportionate share of the income or loss is recognized monthly and is recorded in gain (loss) on equity investments. Non-marketable cost method investments when the equity method does not apply. Significant judgment is required to identify whether an impairment exists in the valuation of the Company’s non-marketable equity investments, and therefore the Company considers this a critical accounting estimate. Its yearly analysis considers both qualitative and quantitative factors that may have a significant impact on the investee’s fair value. Qualitative analysis of its investments involves understanding the financial performance and near-term prospects of the investee, changes in general market conditions in the investee’s industry or geographic area, and the management and governance structure of the investee. Quantitative assessments of the fair value of its investments are developed using the market and income approaches. The market approach includes the use of comparable financial metrics of private and public companies and recent financing rounds. The income approach includes the use of a discounted cash flow model, which requires significant estimates regarding the investees’ revenue, costs, and discount rates. The Company’s assessment of these factors in determining whether an impairment exists could change in the future due to new developments or changes in applied assumptions. |
Other than temporary impairment policy | Other-Than-Temporary Impairment The Company’s long-term equity investments are subject to a periodic impairment review. Impairments affect earnings as follows: Marketable equity securities include the consideration of general market conditions, the duration and extent to which the fair value is below cost, and the Company’s ability and intent to hold the investment for a sufficient period of time to allow for recovery of value in the foreseeable future. The Company also considers specific adverse conditions related to the financial health of, and the business outlook for, the investee, which may include industry and sector performance, changes in technology, operational and financing cash flow factors, and changes in the investee’s credit rating. The Company records other-than-temporary impairments on marketable equity securities and marketable equity method investments in gain (loss) on equity investments. Non-marketable equity investments based on the Company’s assessment of the severity and duration of the impairment, and qualitative and quantitative analysis of the operating performance of the investee; adverse changes in market conditions and the regulatory or economic environment; changes in operating structure or management of the investee; additional funding requirements; and the investee’s ability to remain in business. A series of operating losses of an investee or other factors may indicate that a decrease in value of the investment has occurred that is other than temporary and that shall be recognized even though the decrease in value is in excess of what would otherwise be recognized by application of the equity method. A loss in value of an investment that is other than a temporary decline shall be recognized. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. The Company records other-than-temporary impairments for non-marketable cost method investments and equity method investments in gain (loss) on equity investments. |
Revenue [Policy Text Block] | Revenue Recognition Pursuant to ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration the Company is entitled to in exchange for the goods or services the Company transfers to the customers. At inception of the contract, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Merchandise sales: The Company recognizes sales revenues from merchandise sales when customers obtain control of the Company’s products, which typically occurs upon delivery to customer. Merchandise sales revenues are recorded at the sales price, or “transaction price”. Software sales: The Company does not develop the software products on its own. When the Company receives a purchase order from the customer, the Company would engage with the third-party software company to customize and develop the software products. The Company recognizes software revenues upon completion of the installation and testing, and transfer the control of the software products to the customer. Software revenues are recorded at the fixed sales price, or “transaction price”, pursuant to the sales contracts. The Company may also charge the customer maintenance service fees on a straight-line basis over the service period pursuant to the sales contract. The Company concluded that the performance obligation for the maintenance service is distinct. Therefore, such maintenance service revenue can be separated from other elements in the arrangement. Trade discount and allowances: The Company generally does not provide invoice discounts on product sales to its customers for prompt payment. Product returns : The Company generally does not provide customers with the right to return a product for a full or partial refund, a credit, or an exchange for another product. To date, product allowance and returns have been minimal and, based on its experience, the Company believes that returns of its products will continue to be minimal. The following tables provide details of revenue by major products and by geography. Revenue by Major Products For the year ended December 31, 2021: Nutrition supplement $ 68,840 Water purifier machine 107,826 Automobile carbon reduction machine 305,868 Software 35,953 Total $ 518,487 For the year ended December 31, 2020: Nutrition supplement $ 73,317 Water purifier machine 1,376,795 Automobile carbon reduction machine 400,061 Software 87,613 Total $ 1,937,786 Revenue by Geography For the year ended December 31, 2021: Asia Pacific $ 518,487 Total $ 518,487 For the year ended December 31, 2020: Asia Pacific $ 1,937,786 Total $ 1,937,786 |
Lessee, Leases [Policy Text Block] | Leases The Company adopted FASB Accounting Standards Codification, Topic 842, Leases (“ASC 842”) using the modified retrospective approach, electing the practical expedient that allows the Company not to restate its comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption. For the comparative periods prior to adoption, the Company presented the disclosures which were required under ASC 842. The new leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities represent the Company’s obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. The Company’s future minimum based payments used to determine the Company’s lease liabilities mainly include minimum based rent payments. As most of Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. In addition, the adoption of the standard did not have a material impact on the Company’s results of operations or cash flows. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in Selling, general and administrative expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur. |
Advertising Cost [Policy Text Block] | Advertising Costs Advertising costs are expensed at the time such advertising commences. Advertising expenses were $399 and $22,840 for the year ended December 31, 2021 and 2020, respectively. |
Postemployment Benefit Plans, Policy [Policy Text Block] | Post-retirement and Post-employment Benefits The Company’s subsidiaries in Taiwan adopted the government mandated defined contribution plan pursuant to the Taiwan Labor Pension Act (the “Act”). Such labor regulations require that the rate of contribution made by an employer to the Labor Pension Fund per month shall not be less than 6% of the worker’s monthly salaries. Pursuant to the Act, the Company makes monthly contribution equal to 6% of employees’ salaries to the employees’ pension fund. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $5,873 and $5,377 for the years ended December 31, 2021 and 2020, respectively. Other than the above, the Company does not provide any other post-retirement or post-employment benefits. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements FASB ASC 820, “Fair Value Measurements” defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows: Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, accounts receivable, inventory, advance to suppliers, prepaid expenses, accounts payable, accrued expenses, and due to shareholders, approximate fair value because of to their relatively short maturities. |
Earnings (Loss) Per Share | E ar nings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each year. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Cash and cash equivalents , respectively. The Company has not experienced any losses in such accounts. Customers For the year ended December 31, 2021, two customers accounted for more than 10% of the Company’s total revenues, representing approximately 56% and 39% of its total revenues, and 84% and 11% of accounts receivable in aggregate at December 31, 2021. Customer Net sales for the year ended December 31, 2021 Accounts receivable as of December 31, 2021 A $ 290,749 $ 382,189 B $ 204,018 $ 134,655 For the year ended December 31, 2020, one customer accounted for more than 10% of the Company’s total revenues, representing approximately 88% of its total revenues, and 95% of accounts receivable in aggregate at December 31, 2020. Customer Net sales for the year ended December 31, 2020 Accounts receivable as of December, 2020 A $ 1,714,737 $ 1,054,412 Suppliers For the year ended December 31, 2021, three suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 26%, 57% and 10% of total net purchase, and 0% of accounts payable in aggregate at December 31, 2021, respectively: Supplier Net purchase for the year ended December 31, 2021 Accounts payable balance as of December 31, 2021 A $ - $ - B $ 32,876 $ - C $ - $ - D $ - $ - E $ 71,505 $ - F $ 12,893 $ - For the year ended December 31, 2020, four suppliers accounted for more than 10% of the Company’s total net purchase, representing approximately 36%, 23%, 22% and 10% of total net purchase, and 0%, 98%, 0% and 0% of accounts payable in aggregate at December 31, 2020, respectively: Supplier Net purchase for the year ended December 31, 2020 Accounts payable balance as of December 31, 2020 A $ 182,634 $ - B $ 114,243 $ 18,079 C $ 111,919 $ - D $ 49,230 $ - * Related party transactions (See Note 5). |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign-currency Transactions Foreign-currency transactions are recorded in New Taiwan dollars (“NTD”) and Renminbi (“RMB”) at the rates of exchange in effect when the transactions occur. Gains or losses resulting from the application of different foreign exchange rates when cash in foreign currency is converted into New Taiwan dollars and Renminbi, or when foreign-currency receivables or payables are settled, are credited or charged to income in the year of conversion or settlement. On the balance sheet dates, the balances of foreign-currency assets and liabilities are restated at the prevailing exchange rates and the resulting differences are charged to current income except for those foreign currencies denominated investments in shares of stock where such differences are accounted for as translation adjustments under stockholders’ equity. |
Translation Adjustment | Translation Adjustment The accounts of the Company’s subsidiaries were maintained, and their financial statements were expressed in New Taiwan Dollar (“NTD”) and Renminbi (“RMB”). Such financial statements were translated into U.S. Dollars (“$” or “USD”) in accordance ASC 830, “Foreign Currency Matters”, with the NTD and RMB as the functional currency. According to the Statement, all assets and liabilities are translated at the current exchange rate, common stock and additional paid-in capital are translated at the historical rates, and income statement items are translated at an average exchange rate for the period. The resulting translation adjustments are reported under accumulated other comprehensive income (loss) as a component of stockholders’ equity. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (loss) Comprehensive income (loss) includes accumulated foreign currency translation gains and losses. The Company has reported the components of comprehensive income (loss) on its consolidated statements of operations and other comprehensive income (loss). |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” This pronouncement, along with subsequent ASUs issued to clarify provisions of ASU 2016-13, changes the impairment model for most financial assets and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. In developing the estimate for lifetime expected credit loss, entities must incorporate historical experience, current conditions, and reasonable and supportable forecasts. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. On November 19, 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), finalized various effective date delays for private companies, not-for-profit organizations, and certain smaller reporting companies applying the credit losses (CECL), the revised effective date is January 1 , 2023. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed financial statements. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of revenue by major products | Revenue by Major Products For the year ended December 31, 2021: Nutrition supplement $ 68,840 Water purifier machine 107,826 Automobile carbon reduction machine 305,868 Software 35,953 Total $ 518,487 For the year ended December 31, 2020: Nutrition supplement $ 73,317 Water purifier machine 1,376,795 Automobile carbon reduction machine 400,061 Software 87,613 Total $ 1,937,786 |
Schedule of revenue by geography | Revenue by Geography For the year ended December 31, 2021: Asia Pacific $ 518,487 Total $ 518,487 For the year ended December 31, 2020: Asia Pacific $ 1,937,786 Total $ 1,937,786 |
Schedule of accounts payable | Supplier Net purchase for the year ended December 31, 2021 Accounts payable balance as of December 31, 2021 A $ - $ - B $ 32,876 $ - C $ - $ - D $ - $ - E $ 71,505 $ - F $ 12,893 $ - Supplier Net purchase for the year ended December 31, 2020 Accounts payable balance as of December 31, 2020 A $ 182,634 $ - B $ 114,243 $ 18,079 C $ 111,919 $ - D $ 49,230 $ - |
Schedule of accounts receivable | Customer Net sales for the year ended December 31, 2021 Accounts receivable as of December 31, 2021 A $ 290,749 $ 382,189 B $ 204,018 $ 134,655 Customer Net sales for the year ended December 31, 2020 Accounts receivable as of December, 2020 A $ 1,714,737 $ 1,054,412 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of components of lease expense and supplemental cash flow information | The components of lease expense and supplemental cash flow information related to leases for the year ended are as follows: Year Ended Year Ended Lease Cost December 31, December 31, Operating lease cost (included in general and administrative expenses in the Company’s statement of operations) $ 29,582 $ 834 Other Information Right-of-use assets obtained in exchange for new operating leases liabilities 113,592 2,731 Cash paid for amounts included in the measurement of lease liabilities for the year ended $ 29,582 $ 834 Weighted average remaining lease term – operating leases (in years) 3.08 2.25 Average discount rate – operating lease 2.44 % 2.44 % |
Summary of supplemental balance sheet information related to leases | The supplemental balance sheet information related to leases for the period is as follows: As of As of December 31, 2021 December 31, 2020 Operating leases Right-of-use assets $ 85,419 $ 1,914 Operating lease liabilities $ 85,419 $ 1,914 |
Summary of undiscounted future minimum lease payment | The undiscounted future minimum lease payment schedule as follows: For the years ending December 31, 2022 39,442 2023 38,777 2024 9,639 Total lease payments 87,858 Less: Interest (2,439 ) Total 85,419 |
LONG-TERM INVESTMENT (Tables)
LONG-TERM INVESTMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Investments [Abstract] | |
Equity Method Investments [Table Text Block] | Balance Sheets April 22, 2020 Current assets $ 38,303 Noncurrent assets 779 Current liabilities 1,406,166 Shareholders’ deficit (1,367,084 ) Statement of Operation For the period from January 1, 2020 to April 22, 2020. Net sales $ 854 Gross profit 498 Net loss (14,240 ) Share of loss from investment accounted for using equity method (2,848 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Provision for income tax consists of the following: For the Years Ended December 31, 2021 2020 Current income tax U.S. $ - $ - Taiwan 16,592 16,257 PRC - - Sub total 16,592 16,257 Deferred income tax Deferred tax assets for NOL carry forwards 58,003 61,408 Valuation allowance (58,003 (61,408 Net changes in deferred income tax (benefit) - - Total income tax provision $ 16,592 $ 16,257 |
Schedule of income taxes and its provision for income taxes | The net loss before income taxes and its provision for income taxes as follows: For the Years Ended December 31,2021 December 31,2020 Net loss before income tax (1,084,973 (754,890 Statutory tax rate 20 % 20 % Income tax provision (216,995 ) (150,978 ) Valuation allowance 58,003 61,408 Non-taxable income 180,283 109,061 Other, primarily the difference in tax rates (4,699 (3,234 Income tax provision, net 16,592 16,257 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred taxes as of December 31, 2021 and 2020 were as follows: December 31, December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 235,488 $ 177,485 Less: Valuation allowance (235,488 ) (177,485 ) Deferred tax assets, net $ - $ - |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue by Major Products | $ 518,487 | $ 1,937,786 |
Nutrition supplement [Member] | ||
Revenue by Major Products | 68,840 | 73,317 |
Water purifier machine [Member] | ||
Revenue by Major Products | 107,826 | 1,376,795 |
Automobile carbon reduction machine [Member] | ||
Revenue by Major Products | 305,868 | 400,061 |
Software [Member] | ||
Revenue by Major Products | $ 35,953 | $ 87,613 |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 518,487 | $ 1,937,786 |
Revenue by geography [Member] | ||
Revenue | 518,487 | 1,937,786 |
Asia Pacific [Member] | ||
Revenue | $ 518,487 | $ 1,937,786 |
NATURE OF OPERATIONS AND SUMM_6
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 204,018 | |
Accounts receivable | 134,655 | |
Customer A [Member] | ||
Net sales | 290,749 | $ 1,714,737 |
Accounts receivable | $ 382,189 | $ 1,054,412 |
NATURE OF OPERATIONS AND SUMM_7
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Supplier B [Member] | ||
Represents information about purchase during the period | $ 32,876 | $ 114,243 |
Accounts Payable | 0 | 18,079 |
Supplier C [Member] | ||
Represents information about purchase during the period | 0 | 111,919 |
Accounts Payable | 0 | 0 |
Supplier D [Member] | ||
Represents information about purchase during the period | 0 | 49,230 |
Accounts Payable | 0 | 0 |
Supplier E [Member] | ||
Represents information about purchase during the period | 71,505 | |
Accounts Payable | 0 | |
Supplier F [Member] | ||
Represents information about purchase during the period | 12,893 | |
Accounts Payable | 0 | |
Supplier A [Member] | ||
Represents information about purchase during the period | 0 | 182,634 |
Accounts Payable | $ 0 | $ 0 |
NATURE OF OPERATIONS AND SUMM_8
NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Details Narrative) - USD ($) | Jul. 13, 2021 | Jun. 02, 2020 | May 03, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 01, 2019 |
Payments to Acquire Additional Interest in Subsidiaries | $ 30,562 | |||||
Depreciation expense | $ 1,887 | $ 2,269 | ||||
Property, Plant and Equipment, Depreciation Methods | straight-line method | |||||
Advertising cost | $ 399 | 22,840 | ||||
Defined Contribution Plan, Administrative Expense | 5,873 | 5,377 | ||||
TCDIC insured limits | $ 0 | $ 9,913 | ||||
Shareholders Agreement [Member] | ||||||
Concentration Risk Threshold Percentage | 16.67% | |||||
Line of Credit Facility, Interest Rate During Period | 16.67% | |||||
Shanghai Maosong Co., Ltd ("Maosong") | ||||||
Ownership on intellectual property by related party | $ 1,000,000,000 | |||||
Concentration Risk Threshold Percentage | 16.67% | |||||
Registered capital | $ 100,000 | |||||
Customers | Revenue Benchmark [Member] | Customer A [Member] | ||||||
Concentration Risk Threshold Percentage | 56.00% | 88.00% | ||||
Customers | Revenue Benchmark [Member] | Customer B [Member] | ||||||
Concentration Risk Threshold Percentage | 39.00% | |||||
Customers | Accounts Receivable [Member] | Customer A [Member] | ||||||
Concentration Risk Threshold Percentage | 84.00% | 95.00% | ||||
Customers | Accounts Receivable [Member] | Customer B [Member] | ||||||
Concentration Risk Threshold Percentage | 11.00% | |||||
Supplier Concentration Risk [Member] | Supplier A [Member] | Accounts Payable [Member] | ||||||
Concentration Risk Threshold Percentage | 0.00% | 0.00% | ||||
Supplier Concentration Risk [Member] | Supplier B [Member] | Accounts Payable [Member] | ||||||
Concentration Risk Threshold Percentage | 98.00% | |||||
Supplier Concentration Risk [Member] | Supplier C [Member] | Accounts Payable [Member] | ||||||
Concentration Risk Threshold Percentage | 0.00% | |||||
Supplier Concentration Risk [Member] | Supplier D [Member] | Accounts Payable [Member] | ||||||
Concentration Risk Threshold Percentage | 0.00% | |||||
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Supplier A [Member] | ||||||
Concentration Risk Threshold Percentage | 26.00% | 36.00% | ||||
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Supplier B [Member] | ||||||
Concentration Risk Threshold Percentage | 57.00% | 23.00% | ||||
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Supplier C [Member] | ||||||
Concentration Risk Threshold Percentage | 10.00% | 22.00% | ||||
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Supplier D [Member] | ||||||
Concentration Risk Threshold Percentage | 10.00% | |||||
Shanghai Qifan Qiye Management Co [Member] | ||||||
Sale of Stock, Percentage of Ownership after Transaction | 83.33% | |||||
Intellectual property registered | $ 1,200,000,000 | |||||
Ownership on intellectual property by related party | $ 200,000,000 |
LEASE (Details)
LEASE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease, Cost [Abstract] | ||
Operating lease cost (included in general and administrative expenses in the Company's statement of operations) | $ 29,582 | $ 834 |
Right-of-use assets obtained in exchange for new operating leases liabilities | 113,592 | 2,731 |
Cash paid for amounts included in the measurement of lease liabilities for the year ended | $ 29,582 | $ 834 |
Weighted average remaining lease term – operating leases (in years) | 3 years 29 days | 2 years 3 months |
Average discount rate – operating lease | 2.44% | 2.44% |
LEASE (Details 1)
LEASE (Details 1) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 85,419 | $ 1,914 |
Operating Lease, Liability | $ 85,419 | $ 1,914 |
LEASE (Details 2)
LEASE (Details 2) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 39,442 | |
2023 | 38,777 | |
2024 | 9,639 | |
Total lease payments | 87,858 | |
Less: Interest | (2,439) | |
Total | $ 85,419 | $ 1,914 |
LEASE (Details Narrative)
LEASE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating lease expense | $ 54,482 | $ 24,304 |
Number of operating Leases | two | |
Lessee, Operating Lease, Discount Rate | 2.44% | |
Car [Member] | ||
Lessee, Operating Lease, Remaining Lease Term | 37 months | |
Photocopier [Member] | ||
Lessee, Operating Lease, Remaining Lease Term | 15 months |
LONGTERM INVESTMENT (Details)
LONGTERM INVESTMENT (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 22, 2020 | Dec. 31, 2019 |
Current assets | $ 2,037,901 | $ 2,784,433 | ||
Assets, Noncurrent | 92,158 | 10,089 | ||
Current liabilities | 792,118 | 529,030 | ||
Shareholders' deficit | $ 1,086,168 | $ 2,141,888 | $ 2,756,494 | |
Equity Method Investee [Member] | ||||
Current assets | $ 38,303 | |||
Assets, Noncurrent | 779 | |||
Current liabilities | 1,406,166 | |||
Shareholders' deficit | $ (1,367,084) |
LONGTERM INVESTMENT (Details 1)
LONGTERM INVESTMENT (Details 1) - USD ($) | 4 Months Ended | 12 Months Ended | |
Apr. 22, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 204,018 | ||
Gross profit | 205,536 | $ 1,629,478 | |
Net loss | $ (1,101,565) | $ (771,147) | |
Equity Method Investee [Member] | |||
Net sales | $ 854 | ||
Gross profit | 498 | ||
Net loss | (14,240) | ||
Share of loss from investment accounted for using equity method | $ (2,848) |
LONGTERM INVESTMENT (Details Na
LONGTERM INVESTMENT (Details Narrative) - USD ($) | Apr. 12, 2021 | Mar. 02, 2020 | May 26, 2020 | Mar. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | May 24, 2019 | Jan. 15, 2019 |
Common stock shares issued shares | 180,065,254 | 74,123 | ||||||
Revenue | $ 518,487 | $ 1,937,786 | ||||||
Termination Agreement [Member] | ||||||||
Proceeded to return shares EOS Inc | 10,000,000 | |||||||
Equity Method Investee [Member] | ||||||||
Share of loss from investment accounted for using equity method | $ 2,848 | |||||||
Equity Securities, FV-NI, Realized Loss | $ 17,902 | |||||||
Equity Method Investee [Member] | Information of Strategic Alliance Agreement [Member] | ||||||||
Revenue | $ 15,000,000 | |||||||
Emperor Star [Member] | ||||||||
Percentage of equity method investment | 83.00% | |||||||
Equity Method Investments | $ 134,004 | |||||||
Represents amount of Contributions from noncontrolling interests. | $ 33,398 | |||||||
Board of Directors [Member] | ||||||||
Authorized return EOSS shares | 10,000,000 | |||||||
Represent the information of majority shareholder in equity method investee. | Equity Method Investee [Member] | ||||||||
Common stock shares issued shares | 10,000,000 | 10,000,000 | ||||||
Percentage of equity method investment | 20.00% | 20.00% | ||||||
Represent the information of majority shareholder in equity method investee. | Equity Method Investee [Member] | Information of Strategic Alliance Agreement [Member] | ||||||||
Returned percentage of equity method investment | 20.00% | 20.00% | ||||||
Agree to return amount of equity interest | $ 35,142 | $ 35,142 |
SECURITY DEPOSITS (Details Narr
SECURITY DEPOSITS (Details Narrative) - Shuang Hua International Culture Media Co, Ltd [Member] - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 21, 2019 |
Security Deposit | $ 1,030,000 | $ 1,030,000 | |
Exclusive copyright and distribution agreement [Member] | |||
Security Deposit | $ 2,894,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Due to shareholders | $ 30,858 | $ 107,791 |
Repayment to a related party | 235,289 | 137,416 |
Mr. Yang [Member] | ||
Advance for the working capital | 216,467 | 144,188 |
Repayment to a related party | $ 294,508 | $ 137,416 |
Shared Issued for Liability Converted, shares | 90,000,000 | |
Shared Issued for Liability Converted, amount | $ 59,219 | |
Interest rate | 0.00% |
TERM LOAN (Details Narrative)
TERM LOAN (Details Narrative) - USD ($) | May 07, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Interest Expense | $ 3,142 | $ 494 | ||
Short-term loan | 80,047 | 44,457 | ||
Long-term loan | 204,133 | 122,528 | ||
Outstanding balance of term loan | $ 284,180 | |||
Notes payble | $ 166,985 | |||
Term Loan 2 [Member] | Loan from Bank of Taiwan [Member] | ||||
Interest charge | 1.50% | |||
Term loan description | the first 8 months of the term loan; interest charges on the term loan from 9th to 60th is 2% per annum. | |||
Notes payble | $ 35,917 | |||
Term Loan 2 [Member] | Loan from First Commercial Bank[Member] | ||||
Interest charge | 1.50% | |||
Term loan description | the first 9 months of the term loan; interest charges on the term loan from 10th to 60th is 1.845% per annum. | |||
Notes payble | $ 71,833 | |||
Term Loan 1 [Member] | Loan from Bank of Taiwan [Member] | ||||
Interest charge | 1.00% | |||
Term loan description | the first 8 months of the term loan; interest charges on the term loan from 9th to 60th is 1.9% per annum. | |||
Notes payble | $ 143,666 | |||
Term Loan 1 [Member] | Loan from First Commercial Bank[Member] | ||||
Interest charge | 1.00% | |||
Term loan description | the first 9 months of the term loan; interest charges on the term loan from 10th to 60th is 3.5% per annum. | |||
Notes payble | $ 107,750 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) | Jul. 08, 2021 | Apr. 12, 2021 | Jun. 01, 2020 | Aug. 18, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 29, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 16, 2021 | Dec. 31, 2020 |
Common stock shares issued to intellectual properties | 75,000,000 | ||||||||||
Shares transfer to minority controlling interests | 15,000,000 | ||||||||||
Common stock per value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common stock, shares Authorized | 575,000,000 | 575,000,000 | 75,000,000 | 575,000,000 | |||||||
Stockholders' Equity, Reverse Stock Split | 1-for-1000 | ||||||||||
Preferred Stock par value | $ 0.001 | $ 0.001 | |||||||||
Additional paid-in capital | $ 29,060 | $ 186,474 | |||||||||
Information about sales collaboration agreement [Member] | |||||||||||
Number of common stock issued for promotional and marketing service | shares | 3,000,000 | 3,000,000 | |||||||||
Stock Issued During Period, Value, Issued for Services | $ 1,500,000 | ||||||||||
Termination Agreement [Member] | |||||||||||
Proceeded to return shares EOS Inc | 10,000,000 | ||||||||||
World Capital Holding Ltd [Member] | |||||||||||
Converted price per share | $ 0.001 | ||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $ 15,000 | ||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 15,000,000 | ||||||||||
Co-Innovation Group Limited [Member] | |||||||||||
Converted price per share | $ 0.001 | ||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $ 75,000 | ||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 75,000,000 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Common stock, shares Authorized | 5,000,000 | ||||||||||
Preferred Stock par value | $ 0.001 | ||||||||||
Stock Issued During Period, Shares, New Issues | 1,500,000 | ||||||||||
Stock Issued During Period, Value, New Issues | $ 1,500 | ||||||||||
Additional paid-in capital | $ 1,500 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
U.S. | $ 0 | $ 0 |
Taiwan | 16,592 | 16,257 |
PRC | 0 | 0 |
Sub total | 16,592 | 16,257 |
Deferred tax assets for NOL carry forwards | 58,003 | 61,408 |
Valuation allowance | (58,003) | (61,408) |
Net changes in deferred income tax (benefit) | 0 | 0 |
Total income tax provision | $ 16,592 | $ 16,257 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets, Net [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 235,488 | $ 177,485 |
Less: Valuation allowance | (235,488) | (177,485) |
Net changes in deferred income tax (benefit) | $ 0 | $ 0 |
INCOME TAXES (Details3)
INCOME TAXES (Details3) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Net loss before income tax | $ (1,084,973) | $ (754,890) |
statutory tax rate | 20 | 20 |
Income tax provision | (216,995) | (150,978) |
Valuation allowance | 58,003 | 61,408 |
Non-taxable amount | 180,283 | 109,061 |
Other, primarily the difference in tax rates | (4,699) | (3,234) |
Total income tax provision | $ 16,592 | $ 16,257 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation allowance percentage | 100.00% | ||
Operating loss carry forward | $ 1,101,565 | ||
Standard EIT rate | 25.00% | ||
Current Foreign Tax Expense Benefit | $ 16,592 | $ 16,257 | |
Taiwan [Member] | |||
Income tax rate description | The subsidiary of EOS Inc. and Emperor Star is incorporated in Taiwan. According to the amendments to the “Taiwan Income Tax Act” enacted by the office of the President of Taiwan on February 7, 2018, statutory income tax rate increased from 17% to 20% and undistributed earning tax decreased from 10% to 5%, effective from January 1, 2018. | ||
Current Foreign Tax Expense Benefit | $ 30,000,000 | ||
Percentage of gross profit rate on income tax accrual amount | 16.00% | ||
Foreign Tax Authority [Member] | |||
Foreign statutory income tax rate | 20.00% | 17.00% | |
Decrease in the undistributed earning tax | 5.00% | 10.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - Shuang Hua International Culture Media Co, Ltd [Member] - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 21, 2019 |
Security deposits | $ 1,030,000 | $ 1,030,000 | |
Outstanding payable | $ 1,864,000 | ||
Exclusive copyright and distribution agreement [Member] | |||
Security deposits | $ 2,894,000 |