Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | May 05, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | COSMOS GROUP HOLDINGS INC. | |
Entity Central Index Key | 0001706509 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Entity Common Stock Shares Outstanding | 21,536,933 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 0 | $ 28,816 |
Accounts receivable | 4,125 | 64,570 |
Accounts receivable - related party | 44,812 | 0 |
Total current assets | 48,937 | 93,386 |
Non-current assets: | ||
Property, plant and equipment, net | 37,317 | 47,508 |
Assets classified as discontinued operations | 0 | 31,612 |
TOTAL ASSETS | 86,254 | 172,056 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 125,696 | 71,220 |
Due to related parties | 484,806 | 416,230 |
Lease liabilities | 0 | 8,333 |
Income tax payable | 4,680 | 11,958 |
Total current liabilities | 615,812 | 507,741 |
Non-current liabilities: | ||
Deferred tax liabilities | 7,889 | 7,839 |
Liabilities classified as discontinued operations | 0 | 46,266 |
TOTAL LIABILITIES | 623,071 | 561,846 |
Commitments and contingencies | 0 | 0 |
Stockholders' deficit: | ||
Common stock, $0.001 par value; 500,000,000 shares authorized; 21,536,933 and 21,536,933 shares issued and outstanding as of September 30, 2020 and December 31, 2019 | 21,536 | 21,536 |
Additional paid-in capital | 395,516 | 395,516 |
Accumulated deficit | (951,396) | (806,842) |
Accumulated other comprehensive loss | (2,473) | 0 |
Total stockholders' deficit | (536,817) | (389,790) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 86,254 | $ 172,056 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Stockholders' Equity | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 21,536,933 | 21,536,933 |
Common stock, shares outstanding | 21,536,933 | 21,536,933 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
REVENUE:- | ||||
Revenue | $ 0 | $ 133,421 | $ 90,526 | $ 398,969 |
Revenue - related party | 0 | 0 | 103,187 | 0 |
Total revenues, net | 0 | 133,421 | 193,713 | 398,969 |
Cost of revenues | 0 | 121,016 | (179,658) | 345,035 |
GROSS PROFIT | 0 | 12,405 | 14,055 | 53,934 |
OPERATING EXPENSES: | ||||
General and administrative | (46,654) | (72,796) | (172,854) | (277,162) |
Total operating expenses | (46,654) | (72,796) | (172,854) | (277,162) |
LOSS FROM OPERATIONS | (46,654) | (60,391) | (158,799) | (223,228) |
Other income (expense): | ||||
Interest income | 0 | 0 | 2 | 1 |
Interest expense | 0 | (563) | (943) | (1,688) |
Total other income (expense) | 0 | (563) | (941) | (1,687) |
LOSS BEFORE INCOME TAXES | (46,654) | (60,954) | (159,740) | (224,915) |
Income tax expense | 0 | (243) | 0 | (243) |
Loss from continuing operation | (46,654) | (61,197) | (159,740) | (225,158) |
Loss from discontinued operations, net of tax | 0 | (9,351) | (6,286) | (9,351) |
Gain on disposal of discontinued operations, net of tax | 0 | 0 | 21,472 | 0 |
NET LOSS- | (46,654) | (70,548) | (144,554) | (234,509) |
Less: loss attributable to noncontrolling interest | 0 | (22) | 0 | (22) |
Net loss attributable to Cosmos Group Holding Inc. | $ (46,654) | $ (70,526) | $ (144,554) | $ (234,487) |
Net loss per share: | ||||
Continuing operations - basic and diluted | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Discontinued operations - basic and diluted | 0 | 0 | 0 | 0 |
Net loss per share - basic and diluted | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average common shares outstanding: | ||||
- Basic and diluted- | 21,536,933 | 26,492,993 | 21,536,933 | 23,165,747 |
NET LOSS | $ (46,654) | $ (70,548) | $ (144,544) | $ (234,509) |
Other comprehensive loss | ||||
- Foreign currency translation loss | (148) | 0 | (2,473) | 0 |
COMPREHENSIVE LOSS- | $ (46,802) | $ (70,548) | $ (147,027) | $ (234,509) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (144,554) | $ (234,509) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 10,485 | 14,876 |
Gain on disposal of discontinued operations | (21,475) | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | 15,633 | 21,929 |
Accounts payable and accrued liabilities | 54,476 | 25,461 |
Income tax payable | (7,278) | 243 |
Net cash provided by operating activities from discontinued operation | 1,043 | 606 |
Net cash used in operating activities | (91,670) | (171,394) |
Cash flows from investing activities | ||
Net cash used in investing activities from discontinued operation | 0 | (3,478) |
Net cash used in investing activities | 0 | (3,478) |
Cash flows from financing activities: | ||
Advances from related parties | 68,576 | 172,074 |
Repayment of finance lease | (8,333) | (15,000) |
Net cash provided by financing activities from discontinued operation | 5,328 | 10,895 |
Net cash provided by financing activities | 65,571 | 167,969 |
Effect on exchange rate change on cash and cash equivalents | (2,717) | 0 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (28,816) | (6,903) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 28,816 | 12,149 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 5,246 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 943 | 1,688 |
Cash paid for tax | 7,278 | 0 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS | ||
Shares issued for acquisition of a subsidiary | $ 0 | $ 56,034,230 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT) (UNAUDITED) - USD ($) | Total | Common Stock | Accumulated Deficit | Additional Paid-In Capital | Accumulated Other Comprehensive Income Loss | Noncontrolling Interest | Common stock to be cancelled |
Balance, shares at Dec. 31, 2018 | 21,492,933 | ||||||
Balance, amount at Dec. 31, 2018 | $ (101,813) | $ 21,492 | $ (123,305) | $ 0 | $ 0 | $ 0 | $ 0 |
Net loss | (48,765) | $ 0 | (48,765) | 0 | 0 | 0 | 0 |
Balance, shares at Mar. 31, 2019 | 21,492,933 | ||||||
Balance, amount at Mar. 31, 2019 | (150,578) | $ 21,492 | (172,070) | 0 | 0 | 0 | 0 |
Balance, shares at Dec. 31, 2018 | 21,492,933 | ||||||
Balance, amount at Dec. 31, 2018 | (101,813) | $ 21,492 | (123,305) | 0 | 0 | 0 | 0 |
Net loss | (234,509) | ||||||
Balance, shares at Sep. 30, 2019 | 28,800,531 | ||||||
Balance, amount at Sep. 30, 2019 | 109,536,121 | $ 28,800 | (356,388) | 56,027,997 | 0 | 53,836,787 | (1,075) |
Balance, shares at Mar. 31, 2019 | 21,492,933 | ||||||
Balance, amount at Mar. 31, 2019 | (150,578) | $ 21,492 | (172,070) | 0 | 0 | 0 | 0 |
Net loss | (115,196) | $ 0 | (115,196) | 0 | 0 | 0 | 0 |
Balance, shares at Jun. 30, 2019 | 21,492,933 | ||||||
Balance, amount at Jun. 30, 2019 | (265,774) | $ 21,492 | (287,266) | 0 | 0 | 0 | 0 |
Net loss | (70,548) | $ 0 | (70,526) | 0 | 0 | (22) | 0 |
Common stock issued for acquisition of a subsidiary, shares | 6,232,951 | ||||||
Common stock issued for acquisition of a subsidiary, amount | 109,872,443 | $ 6,233 | 1,404 | 56,027,997 | 0 | 53,836,809 | 0 |
Common stocks issued for consulting services and subsequently cancelled, shares | 1,074,647 | ||||||
Common stocks issued for consulting services and subsequently cancelled, amount | 0 | $ 1,075 | 0 | 0 | 0 | 0 | (1,075) |
Balance, shares at Sep. 30, 2019 | 28,800,531 | ||||||
Balance, amount at Sep. 30, 2019 | 109,536,121 | $ 28,800 | (356,388) | 56,027,997 | 0 | 53,836,787 | (1,075) |
Balance, shares at Dec. 31, 2019 | 21,536,933 | ||||||
Balance, amount at Dec. 31, 2019 | (389,790) | $ 21,536 | (806,842) | 395,516 | 0 | 0 | 0 |
Net loss | (12,669) | 0 | (12,669) | 0 | 0 | 0 | 0 |
Foreign currency translation adjustment | (2,636) | $ 0 | 0 | 0 | (2,636) | 0 | 0 |
Balance, shares at Mar. 31, 2020 | 21,536,933 | ||||||
Balance, amount at Mar. 31, 2020 | (405,095) | $ 21,536 | (819,511) | 395,516 | (2,636) | 0 | 0 |
Balance, shares at Dec. 31, 2019 | 21,536,933 | ||||||
Balance, amount at Dec. 31, 2019 | (389,790) | $ 21,536 | (806,842) | 395,516 | 0 | 0 | 0 |
Net loss | (144,554) | ||||||
Balance, shares at Sep. 30, 2020 | 21,536,933 | ||||||
Balance, amount at Sep. 30, 2020 | (536,817) | $ 21,536 | (951,396) | 395,516 | (2,473) | 0 | 0 |
Balance, shares at Mar. 31, 2020 | 21,536,933 | ||||||
Balance, amount at Mar. 31, 2020 | (405,095) | $ 21,536 | (819,511) | 395,516 | (2,636) | 0 | 0 |
Net loss | (85,231) | 0 | (85,231) | 0 | 0 | 0 | 0 |
Foreign currency translation adjustment | 311 | $ 0 | 0 | 0 | 311 | 0 | 0 |
Balance, shares at Jun. 30, 2020 | 21,536,933 | ||||||
Balance, amount at Jun. 30, 2020 | (490,015) | $ 21,536 | (904,742) | 395,516 | (2,325) | 0 | 0 |
Net loss | (46,654) | 0 | (46,654) | 0 | 0 | 0 | 0 |
Foreign currency translation adjustment | (148) | $ 0 | 0 | 0 | (148) | 0 | 0 |
Balance, shares at Sep. 30, 2020 | 21,536,933 | ||||||
Balance, amount at Sep. 30, 2020 | $ (536,817) | $ 21,536 | $ (951,396) | $ 395,516 | $ (2,473) | $ 0 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2020 | |
BASIS OF PRESENTATION | |
NOTE 1 - BASIS OF PRESENTATION | The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of December 31, 2019 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2020 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2019. |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 9 Months Ended |
Sep. 30, 2020 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
NOTE 2 - ORGANIZATION AND BUSINESS BACKGROUND | Cosmos Group Holdings Inc. (the “Company” or “COSG”) incorporated in the state of Nevada on August 14, 1987. The Company, through its subsidiaries, mainly engaged in the provision of truckload transportation service in Hong Kong, in which the Company utilized its owned trucks or independent contractor owned trucks for the pickup and delivery of freight from port to the designated destination, upon the customers’ request. Starting March 2020, the Company generates most of its revenues from referring truckload transportation service business to one of its related party Lee Tat Logistic Holdings Limited, a company owned by one director of the Company, and charges a fixed rate of commission fee. Prior to March, 2020, the Company also operated artificial intelligence educational business through its wholly owned subsidiaries Cosmos Robotor Holdings Limited, a British Virgin Islands corporation (“Cosmos Robotor”), organized on May 7, 2019, AiTeach International Limited, a Hong Kong limited liability company, organized on June 3, 2019. On March 16, 2020, the Company approved to discontinue and exit its AI Education business. On May 4, 2020, the Company completed a stock transfer agreement with each of the three purchasers (the “Purchasers”), pursuant to which the Company agreed to transfer its 100% interest in Cosmos Robotors to the three Purchasers for $50 in aggregate, and the Purchasers agreed to assume all the assets and liabilities of Cosmos Robotor. The results of AI Education business have been presented as a discontinued operation in the condensed consolidated financial statements. Description of subsidiaries Name Place of incorporation and kind of legal entity Principal activities and place of operation Particulars of issued/ registered share capital Effective interest held Lee Tat International Holdings Limited British Virgin Islands Investment holding 50,000 shares at US$1 each 100 % Lee Tat Transportation International Limited Hong Kong Logistic and delivery 10,000 ordinary shares for HK$10,000 100 % COSG and its subsidiaries are hereinafter referred to as (the “Company”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes. · Use of estimates In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. · Basis of consolidation The condensed consolidated financial statements include the financial statements of COSG and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. · Reclassification Certain reclassifications have been made to the prior year financial statements to conform to the current period presentation. The reclassification had no impact on previously reported net loss or accumulated deficit. · Discontinued operation On March 16, 2020, the Company approved to discontinue and exit its AI Education business. On May 4, 2020, the Company completed a stock transfer agreement with the three Purchasers, pursuant to which the Company agreed to transfer its 100% interest in Cosmos Robotor to the three Purchasers for $50 in aggregate, and the Purchasers agreed to assume all the assets and liabilities of Cosmos Robotor (see Note 2). · Cash and cash equivalents Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. Cash equivalents consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. · Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2020 and December 31, 2019, there was no allowance for doubtful accounts. · Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Service vehicle 8 years Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. Depreciation expense for the three months ended September 30, 2020 and 2019 were $3,784 and $4,959, respectively. Depreciation expense for the nine months ended September 30, 2020 and 2019 were $10,485 and $14,876, respectively. · Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets · Revenue recognition The Company adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) Under ASU 2014-09, the Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company derives its revenues from the rendering of transportation services and recognizes in full upon completion of delivery to the receiver’s location. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. · Comprehensive income ASC Topic 220, “ Comprehensive Income · Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For the three and nine months ended September 30, 2020 and 2019, the Company did not have any interest and penalties associated with tax positions. As of September 30, 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company conducts the majority of its businesses Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by a foreign tax authority. · Leases The Company adopted Topic 842, Leases (“ASC 842”), using the modified retrospective approach through a cumulative-effect adjustment and utilizing the effective date of January 1, 2019 as its date of initial application, with prior periods unchanged and presented in accordance with the previous guidance in Topic 840, Leases (“ASC 840”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component. · Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260, “ Earnings per Share · Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations and comprehensive loss. The reporting currency of the Company is the United States Dollar ("US$"). The Company's subsidiaries in Hong Kong and the PRC maintain their books and records in their local currency, Hong Kong Dollars ("HK$") and Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement · Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. · Segment reporting ASC Topic 280, “ Segment Reporting · Fair value of financial instruments The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts and retention receivable, prepayments and other receivables, accounts payable, income tax payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. Management believes, based on the current market prices or interest rates for similar debt instruments, the fair value of short-term bank borrowings and note payable approximate the carrying amount. The Company also follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures • Level 1 • Level 2 : • Level 3 Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. · Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (ASU 2016-13), which changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020, with early adoption permitted. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. The Company does not expect the adoption of this standard to have a material impact on our financial position, results of operations or cash flows. In August 2020, the FASB issued ASU No. 2020-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2020-13), which adds and modifies certain disclosure requirements for fair value measurements. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, or valuation processes for Level 3 fair value measurements. However, public business entities will be required to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and related changes in unrealized gains and losses included in other comprehensive income. ASU 2020-13 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its financial statements. |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2020 | |
GOING CONCERN UNCERTAINTIES | |
NOTE 4 - GOING CONCERN UNCERTAINTIES | The accompanying condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has experienced a net loss of $144,554 and negative operating cash flows of $91,670 for the period ended September 30, 2020. Also, at September 30, 2020, the Company has incurred an accumulated deficit of $951,396. The continuation of the Company as a going concern through September 30, 2021 is dependent upon the continued financial support from its stockholders. Management believes the Company is currently pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2020 | |
DISCONTINUED OPERATIONS | |
NOTE 5 - DISCONTINUED OPERATIONS | On March 16, 2020, the Company approved to discontinue and exit its AI Education business. On May 4, 2020, the Company completed a stock transfer agreement with each of the three Purchasers, pursuant to which the Company agreed to transfer its 100% interest in Cosmos Robotor to the three Purchasers for $50 in aggregate, and the Purchasers agreed to assume all the assets and liabilities of Cosmos Robotor (see Note 2). The results of AI Education business have been presented as a discontinued operation in the consolidated statements of operations and comprehensive loss. Selected operating results for the discontinued business are presented in the following table: For the period from January 1, 2020 to May 4, 2020 Net revenue $ - Cost of revenue - General and administrative expense (6,292 ) Other income 6 Loss before income taxes (6,286 ) Income taxes - Loss from discontinued operations, net of tax $ (6,286 ) Net assets of discontinued operations distributed as of May 4, 2020 were summarized as follows: As of May 4, 2020 Cash & cash equivalents $ 11,189 Property and equipment 17,721 Assets from discontinued operations $ 28,910 Accrued expenses $ 1,302 Due to director 24,016 Due to related parties 25,014 Liabilities from discontinued operations $ 50,332 At the date of disposal on May 4, 2020, the Company recorded $6,286 as loss from operations of discontinued entity and $21,472 of gain on disposal of discontinued entity. Following is the calculation for a gain from disposal of discontinued operations at the date of disposal of May 4, 2020: Proceeds from disposal $ 50 Less: Net assets distributed as of May 4, 2020 (21,422 ) Gain on disposal of discontinued operations 21,472 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
RELATED PARTY TRANSACTIONS | |
NOTE 6 - RELATED PARTY TRANSACTIONS | Sales to related party Starting March 2020, the Company generates its revenue mostly from referring truckload transportation service business to one of its related party Lee Tat Logistic Holdings Limited, a company owned by one the director of the Company, and charges a fixed rate of commission fee. Revenue from Lee Tat Logistic Holding Limited amounted to $0 and $0 for the three months ended September 30, 2020 and 2019, respectively. Revenue from Lee Tat Logistic Holding Limited amounted to $103,187 and $0 for the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020 and December 31, 2019, accounts receivable from Lee Tat Logistic Holding Limited was $44,812 and $0, respectively. Due to related parties As of September 30, 2020 and December 2019, the Company had $85,657 and $85,111 due to Cosmos Links International Holding Limited, respectively. Cosmos Links International Holding Limited is an entity controlled by Miky Wan, President, Chief Executive Officer and director of the Company. Those loans are unsecured, bear no interest, and are due on demand. As of September 30, 2020 and December 2019, the Company had $370,293 and $331,119 due to Asia Cosmos Group Limited, respectively. Asia Cosmos Group Limited is an entity controlled by Miky Wan, President, Chief Executive Officer and director of the Company. Those loans are unsecured, bear no interest, and are due on demand. The Company has advanced funds from Koon Wing Cheung, a shareholder of the Company and director of Lee Tat International Holdings limited, for working capital purposes. As of September 30, 2020 and December 31, 2019 there were $28,856 and $0 advances outstanding, respectively. Those advances are unsecured, bear no interest, and are due on demand. Lease On July 1, 2020, the Company entered into a lease agreement with Koon Wing Cheung, a shareholder of the Company and director of Lee Tat International Holdings limited, pursuant to which the Company agreed to lease a real property located in Hong Kong from July 1, 2020 to March 31, 2021, with a monthly rent of $7,740 (HK$ 60,000), payable in advance on the 1st day of each month. The future minimum lease payment at September 30, 2020 is $46,440 for the year ended September 30, 2021. |
LEASE LIABILITY
LEASE LIABILITY | 9 Months Ended |
Sep. 30, 2020 | |
LEASE LIABILITY | |
NOTE 7 - LEASE LIABILITY | The Company purchased a service vehicle under a finance lease agreement with the effective interest rate of 2.25% per annum, due through May 29, 2020, with principal and interest payable monthly. As of September 30, 2020, the Company paid off the installment of lease liability. September 30, 2020 December 31, 2019 (Unaudited) Finance lease $ – $ 9,271 Less: interest expense – (938 ) $ – $ 8,333 Current portion – 8,333 Non-current portion – – Total $ – $ 8,333 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
INCOME TAXES | |
NOTE 8 - INCOME TAXES | The Company generated an operating loss for the three and nine months ended September 30, 2020 and 2019 and did not record income tax expense. The Company has operations in various countries and is subject to tax in the jurisdictions in which they operate, as follows: United States of America COSG is registered in the State of Nevada and is subject to the tax laws of United States of America As of September 30, 2020, the operation in the United States of America incurred $2,687,300 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2039, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $564,333 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. Hong Kong The Company’s subsidiaries operating in Hong Kong are subject to the Hong Kong Profits Tax at the two-tiered income tax rate from 8.25% to 16.5% on the assessable income arising in Hong Kong during its tax year. The reconciliation of income tax rate to the effective income tax rate for the nine months ended September 30, 2020 and 2020 is as follows: Nine months ended September 30, 2020 2019 Loss before income taxes $ (87,082 ) $ (57,695 ) Statutory income tax rate 8.25 % 8.25 % Income tax expense at statutory rate (7,184 ) (4,759 ) Tax effect from non-deductible items 865 1,227 Tax effect from deductible items – (65 ) Tax loss carryforwards 6,319 3,597 Tax adjustment – 243 Income tax expense $ – $ 243 The following is a reconciliation of the statutory tax rate to the effective tax rate: For the Nine Months Ended September 30, 2020 2019 U.S. statutory tax (benefit) (21.0 )% (21.0 )% Hong Kong statutory tax (benefit) (8.25 )% (8.25 )% Permanent and temporary differences 0.54 % 0.52 % Change in deferred tax asset valuation allowance 28.71 % 28.73 % Other - % 0.11 % Effective income tax rate - % 0.11 % |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 9 Months Ended |
Sep. 30, 2020 | |
STOCKHOLDERS EQUITY | |
NOTE 9 - STOCKHOLDERS' EQUITY | Authorized stock The Company’s authorized share is 500,000,000 common shares with a par value of $0.001 per share. Common stock outstanding As of September 30, 2020 and December 31, 2019, the Company had a total of 21,536,933 shares of its common stock issued and outstanding, respectively. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 9 Months Ended |
Sep. 30, 2020 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
NOTE 10 - CONCENTRATIONS OF RISK | The Company is exposed to the following concentrations of risk: (a) Major customer For the three months ended September 30, 2020, the Company generated no revenue, whilst, for the three months ended September 2019, the customers who accounts for 10% or more of the Company’s revenues and its outstanding receivable balances as at period-end dates, are presented as follows: Three months ended September 30, 2019 September 30, 2019 Customers Revenues Percentage of revenues Accounts Receivable Customer B $ 71,116 53 % $ 18,740 Customer C 41,651 31 % 3,944 Total: $ 112,767 85 % Total: $ 22,684 For the nine months ended September 30, 2020 and 2019, the customers who accounts for 10% or more of the Company’s revenues and its outstanding receivable balances as at period-end dates, are presented as follows: Nine months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage of revenues Accounts Receivable Customer A – Related party $ 103,187 53 % $ 44,812 Customer C 61,283 32 % 3,969 Customer B 26,477 14 % – Total: $ 190,947 99 % Total: $ 48,781 Nine months ended September 30, 2019 September 30, 2019 Customers Revenues Percentage of revenues Accounts Receivable Customer B $ 183,056 46 % $ 18,740 Customer C 151,819 38 % 3,944 Total: $ 334,875 84 % Total: $ 22,684 All customers are located in the Hong Kong. (b) Credit risk Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. (c) Exchange rate risk The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in HKD and a significant portion of the assets and liabilities are denominated in HKD. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and HKD. If HKD depreciates against US$, the value of HKD revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial market risk. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2020 | |
SUBSEQUENT EVENTS | |
NOTE 11 - SUBSEQUENT EVENTS | In accordance with ASC Topic 855, “ Subsequent Events |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates | In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. |
Basis of consolidation | The condensed consolidated financial statements include the financial statements of COSG and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Reclassification | Certain reclassifications have been made to the prior year financial statements to conform to the current period presentation. The reclassification had no impact on previously reported net loss or accumulated deficit. |
Discontinued Operations | On March 16, 2020, the Company approved to discontinue and exit its AI Education business. On May 4, 2020, the Company completed a stock transfer agreement with the three Purchasers, pursuant to which the Company agreed to transfer its 100% interest in Cosmos Robotor to the three Purchasers for $50 in aggregate, and the Purchasers agreed to assume all the assets and liabilities of Cosmos Robotor (see Note 2). |
Cash and Cash Equivalents | Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. Cash equivalents consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. |
Accounts Receivable | Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. At the end of fiscal year, the Company specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2020 and December 31, 2019, there was no allowance for doubtful accounts. |
Plant and Equipment | Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Service vehicle 8 years Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. Depreciation expense for the three months ended September 30, 2020 and 2019 were $3,784 and $4,959, respectively. Depreciation expense for the nine months ended September 30, 2020 and 2019 were $10,485 and $14,876, respectively. |
Impairment of Long-Lived Assets | In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets |
Revenue Recognition | The Company adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) Under ASU 2014-09, the Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company derives its revenues from the rendering of transportation services and recognizes in full upon completion of delivery to the receiver’s location. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. |
Comprehensive income | ASC Topic 220, “ Comprehensive Income |
Income taxes | Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For the three and nine months ended September 30, 2020 and 2019, the Company did not have any interest and penalties associated with tax positions. As of September 30, 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company conducts the majority of its businesses Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by a foreign tax authority. |
Leases | The Company adopted Topic 842, Leases (“ASC 842”), using the modified retrospective approach through a cumulative-effect adjustment and utilizing the effective date of January 1, 2019 as its date of initial application, with prior periods unchanged and presented in accordance with the previous guidance in Topic 840, Leases (“ASC 840”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component. |
Net loss per share | The Company calculates net loss per share in accordance with ASC Topic 260, “ Earnings per Share |
Foreign currencies translation | Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations and comprehensive loss. The reporting currency of the Company is the United States Dollar ("US$"). The Company's subsidiaries in Hong Kong and the PRC maintain their books and records in their local currency, Hong Kong Dollars ("HK$") and Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement |
Related parties | Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Segment reporting | ASC Topic 280, “ Segment Reporting |
Fair value of financial instruments | The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts and retention receivable, prepayments and other receivables, accounts payable, income tax payable, amount due to a related party, other payables and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. Management believes, based on the current market prices or interest rates for similar debt instruments, the fair value of short-term bank borrowings and note payable approximate the carrying amount. The Company also follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures • Level 1 • Level 2 : • Level 3 Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Recent Accounting Pronouncements | In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (ASU 2016-13), which changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020, with early adoption permitted. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. The Company does not expect the adoption of this standard to have a material impact on our financial position, results of operations or cash flows. In August 2020, the FASB issued ASU No. 2020-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2020-13), which adds and modifies certain disclosure requirements for fair value measurements. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, or valuation processes for Level 3 fair value measurements. However, public business entities will be required to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and related changes in unrealized gains and losses included in other comprehensive income. ASU 2020-13 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its financial statements. |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
BASIS OF PRESENTATION | |
Schedule of description of subsidiaries | Name Place of incorporation and kind of legal entity Principal activities and place of operation Particulars of issued/ registered share capital Effective interest held Lee Tat International Holdings Limited British Virgin Islands Investment holding 50,000 shares at US$1 each 100 % Lee Tat Transportation International Limited Hong Kong Logistic and delivery 10,000 ordinary shares for HK$10,000 100 % |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Property and equipment useful life | Expected useful life Service vehicle 8 years |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
DISCONTINUED OPERATIONS | |
Schedule of discontinued operations and comprehensive loss | For the period from January 1, 2020 to May 4, 2020 Net revenue $ - Cost of revenue - General and administrative expense (6,292 ) Other income 6 Loss before income taxes (6,286 ) Income taxes - Loss from discontinued operations, net of tax $ (6,286 ) |
Schedule of net assets of discontinued operations | As of May 4, 2020 Cash & cash equivalents $ 11,189 Property and equipment 17,721 Assets from discontinued operations $ 28,910 Accrued expenses $ 1,302 Due to director 24,016 Due to related parties 25,014 Liabilities from discontinued operations $ 50,332 |
Schedule of gain/loss disposal of discontinued operations | Proceeds from disposal $ 50 Less: Net assets distributed as of May 4, 2020 (21,422 ) Gain on disposal of discontinued operations 21,472 |
LEASE LIABILITY (Tables)
LEASE LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
LEASE LIABILITY | |
Schedule of lease information | September 30, 2020 December 31, 2019 (Unaudited) Finance lease $ – $ 9,271 Less: interest expense – (938 ) $ – $ 8,333 Current portion – 8,333 Non-current portion – – Total $ – $ 8,333 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
INCOME TAXES (Tables) | |
Schedule of Income tax reconciliation | Nine months ended September 30, 2020 2019 Loss before income taxes $ (87,082 ) $ (57,695 ) Statutory income tax rate 8.25 % 8.25 % Income tax expense at statutory rate (7,184 ) (4,759 ) Tax effect from non-deductible items 865 1,227 Tax effect from deductible items – (65 ) Tax loss carryforwards 6,319 3,597 Tax adjustment – 243 Income tax expense $ – $ 243 |
Schedule of reconciliation of the statutory tax rate | For the Nine Months Ended September 30, 2020 2019 U.S. statutory tax (benefit) (21.0 )% (21.0 )% Hong Kong statutory tax (benefit) (8.25 )% (8.25 )% Permanent and temporary differences 0.54 % 0.52 % Change in deferred tax asset valuation allowance 28.71 % 28.73 % Other - % 0.11 % Effective income tax rate - % 0.11 % |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
Schedule of Concentrations of Risk | Three months ended September 30, 2019 September 30, 2019 Customers Revenues Percentage of revenues Accounts Receivable Customer B $ 71,116 53 % $ 18,740 Customer C 41,651 31 % 3,944 Total: $ 112,767 85 % Total: $ 22,684 For the nine months ended September 30, 2020 and 2019, the customers who accounts for 10% or more of the Company’s revenues and its outstanding receivable balances as at period-end dates, are presented as follows: Nine months ended September 30, 2020 September 30, 2020 Customers Revenues Percentage of revenues Accounts Receivable Customer A – Related party $ 103,187 53 % $ 44,812 Customer C 61,283 32 % 3,969 Customer B 26,477 14 % – Total: $ 190,947 99 % Total: $ 48,781 Nine months ended September 30, 2019 September 30, 2019 Customers Revenues Percentage of revenues Accounts Receivable Customer B $ 183,056 46 % $ 18,740 Customer C 151,819 38 % 3,944 Total: $ 334,875 84 % Total: $ 22,684 |
ORGANIZATION AND BUSINESS BAC_3
ORGANIZATION AND BUSINESS BACKGROUND (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Lee Tat International Holdings limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | British Virgin Islands |
Principal activities | Investment holding |
Registered share capital | 50,000 ordinary shares at US$1 each |
Lee Tat Transporation International Limited [Member] | |
Ownership percentage | 100.00% |
Place of incorporation | Hong Kong |
Principal activities | Logistic and delivery |
Registered share capital | 10,000 ordinary shares at HK$10,000 |
ORGANIZATION AND BUSINESS BAC_4
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) - Cosmos Robotor Holdings Limited [Member] | 1 Months Ended | 3 Months Ended |
Mar. 16, 2020USD ($) | Mar. 16, 2020USD ($) | |
Ownership transfered, percentage | 100.00% | 100.00% |
Aggregate purchase price | $ 50 | $ 50 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Service vehicle [Member] | |
Expected useful life of property | 8 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 16, 2020 | Sep. 30, 2020 | Mar. 16, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Depreciation expense | $ 3,784 | $ 4,959 | $ 10,485 | $ 14,876 | ||
Income tax benefit | Tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority | |||||
Cosmos Robotor Holdings Limited [Member] | ||||||
Ownership transfered, percentage | 100.00% | 100.00% | ||||
Aggregate purchase price | $ 50 | $ 50 |
GOING CONCERN UNCERTAINTIES (De
GOING CONCERN UNCERTAINTIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
GOING CONCERN UNCERTAINTIES | |||||||||
Accumulated deficit | $ (951,396) | $ (951,396) | $ (806,842) | ||||||
Net cash used in operating activities | (91,670) | $ (171,394) | |||||||
Net loss | $ (46,654) | $ (85,231) | $ (12,669) | $ (70,548) | $ (115,196) | $ (48,765) | $ (144,554) | $ (234,509) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | May 04, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net revenue | $ 0 | $ 133,421 | $ 193,713 | $ 398,969 | |
Cost of revenue | 0 | 121,016 | (179,658) | 345,035 | |
General and administrative | (46,654) | (72,796) | (172,854) | (277,162) | |
Loss before income taxes | $ (46,654) | $ (60,954) | $ (159,740) | $ (224,915) | |
Discontinued Operations [Member] | |||||
Net revenue | $ 0 | ||||
Cost of revenue | 0 | ||||
General and administrative | (6,292) | ||||
Other income | 6 | ||||
Loss before income taxes | (6,286) | ||||
Income taxes | 0 | ||||
Loss from discontinued operations, net of tax | $ (6,286) |
DISCONTINUED OPERATIONS (Deta_2
DISCONTINUED OPERATIONS (Details 1) - USD ($) | Sep. 30, 2020 | May 04, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Cash & cash equivalents | $ 0 | $ 28,816 | $ 5,246 | $ 12,149 | |
Assets from discontinued operations | 0 | 31,612 | |||
Due to related parties | 484,806 | 416,230 | |||
Liabilities from discontinued operations | $ 0 | $ 46,266 | |||
Discontinued Operations [Member] | |||||
Cash & cash equivalents | $ 11,189 | ||||
Property and equipment | 17,721 | ||||
Assets from discontinued operations | 28,910 | ||||
Accrued expenses | 1,302 | ||||
Due to director | 24,016 | ||||
Due to related parties | 25,014 | ||||
Liabilities from discontinued operations | $ 50,332 |
DISCONTINUED OPERATIONS (Deta_3
DISCONTINUED OPERATIONS (Details 2) | May 04, 2020USD ($) |
Gain on disposal of discontinued operations | $ 21,472 |
Discontinued Operations [Member] | |
Proceeds from disposal | 50 |
Less: Net assets distributed as of May 4, 2020 | (21,422) |
Gain on disposal of discontinued operations | $ 21,472 |
DISCONTINUED OPERATIONS (Deta_4
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | May 04, 2020 | Mar. 16, 2020 | Sep. 30, 2020 | Mar. 16, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Loss from operations of discontinued | $ 6,286 | $ 0 | $ (9,351) | $ (6,286) | $ (9,351) | ||
Gain on disposal of discontinued entity | $ 21,472 | ||||||
Cosmos Robotor Holdings Limited [Member] | |||||||
Aggregate purchase price | $ 50 | $ 50 | |||||
Ownership transfered, percentage | 100.00% | 100.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2021 | Dec. 31, 2019 | |
Accounts receivable | $ 4,125 | $ 4,125 | $ 64,570 | |||
Lee Tat Logistic Holdings Limited [Member] | ||||||
Sales to related party | 0 | $ 0 | 103,187 | $ 0 | ||
Accounts receivable | 44,812 | 44,812 | 0 | |||
Cosmos Links International Holding Limited [Member] | ||||||
Due to related party | 85,657 | 85,657 | 85,111 | |||
Asia Cosmos Group Limited [Member] | ||||||
Due to related party | 370,293 | 370,293 | 331,119 | |||
Koon Wing CHEUNG [Member] | ||||||
Due to related party | 28,856 | 28,856 | $ 0 | |||
Koon Wing CHEUNG [Member] | July 1, 2020 [Member] | ||||||
Lease monthly rent | 7,740 | |||||
Future minimum lease payment | $ 46,440 | $ 46,440 | $ 46,440 | |||
Lease description | the Company agreed to lease a real property located in Hong Kong from July 1, 2020 to March 31, 2021, with a monthly rent of $7,740 (HK$ 60,000), payable in advance on the 1st day of each month |
LEASE LIABILITY (Details)
LEASE LIABILITY (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
LEASE LIABILITY | ||
Finance lease | $ 0 | $ 9,271 |
Less: interest expense | 0 | (938) |
Net | 0 | 8,333 |
Current portion | 0 | 8,333 |
Non-current portion | 0 | 0 |
Total | $ 0 | $ 8,333 |
LEASE LIABILITY (Details Narrat
LEASE LIABILITY (Details Narrative) - Service Vehicles [Member] | 9 Months Ended |
Sep. 30, 2020 | |
Finance lease agreement, interest rate | 2.25% |
Finance lease agreement, description | Due through May 29, 2020, with principal and interest payable monthly |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income tax expense | $ 0 | $ 243 | $ 0 | $ 243 |
Hong Kong Profits Tax [Member] | ||||
Loss before income taxes | $ (87,082) | $ (57,695) | ||
Statutory income tax rate | 8.25% | 8.25% | ||
Income tax expense at statutory rate | $ (7,184) | $ (4,759) | ||
Tax effect from non-deductible items | 865 | 1,227 | ||
Tax effect from deductible items | 0 | (65) | ||
Tax loss carryforwards | 6,319 | 3,597 | ||
Tax adjustment | 0 | 243 | ||
Income tax expense | $ 0 | $ 243 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
INCOME TAXES | ||
U.S. statutory tax (benefit) | (21.00%) | (21.00%) |
Hong Kong statutory tax (benefit) | (8.25%) | (8.25%) |
Permanent and temporary differences | 0.54% | 0.52% |
Change in deferred tax asset valuation allowance | 28.71% | 28.73% |
Other | 0.00% | 0.11% |
Effective income tax rate | 0.00% | 0.11% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating losses carry forward | $ (2,687,300) | |
Deferred tax assets, valuation allowance | $ 564,333 | |
Operating losses carry forward, expiration period | The net operating loss carryforwards begin to expire in 2039 | |
Income tax rate | (21.00%) | (21.00%) |
Hong Kong [Member] | Minimum [Member] | ||
Income tax rate | 8.25% | |
Hong Kong [Member] | Maximum [Member] | ||
Income tax rate | 16.50% |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
STOCKHOLDERS' EQUITY (Details Narrative) | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 21,536,933 | 21,536,933 |
Common stock, shares, outstanding | 21,536,933 | 21,536,933 |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | $ 0 | $ 133,421 | $ 193,713 | $ 398,969 |
Customer A - Related party [Member] | ||||
Revenues | $ 103,187 | |||
Percentage of revenues | 53.00% | |||
Accounts receivable | 44,812 | $ 44,812 | ||
Total [Member] | ||||
Revenues | $ 112,767 | $ 190,947 | ||
Percentage of revenues | 85.00% | 99.00% | ||
Accounts receivable | 48,781 | $ 22,684 | $ 48,781 | 22,684 |
Customer B [Member] | ||||
Revenues | $ 71,116 | $ 26,477 | ||
Percentage of revenues | 53.00% | 14.00% | ||
Accounts receivable | 18,740 | $ 18,740 | $ 18,740 | 18,740 |
Customer C [Member] | ||||
Revenues | $ 41,651 | $ 61,283 | ||
Percentage of revenues | 31.00% | 32.00% | ||
Accounts receivable | $ 3,969 | $ 3,944 | $ 3,969 | $ 3,944 |
CONCENTRATIONS OF RISK (Detai_2
CONCENTRATIONS OF RISK (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | $ 0 | $ 133,421 | $ 193,713 | $ 398,969 |
Major Customer C [Member] | ||||
Revenues | $ 151,819 | |||
Percentage of revenues | 38.00% | |||
Accounts receivable | 3,944 | $ 3,944 | ||
Major Customer B [Member] | ||||
Revenues | $ 183,056 | |||
Percentage of revenues | 46.00% | |||
Accounts receivable | 18,740 | $ 18,740 | ||
Major Customer Total [Member] | ||||
Revenues | $ 334,875 | |||
Percentage of revenues | 84.00% | |||
Accounts receivable | $ 22,684 | $ 22,684 |