Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-41669 |
Entity Registrant Name | Multi Ways Holdings Limited |
Entity Central Index Key | 0001941500 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 3E Gul Circle |
Entity Address, Country | SG |
Entity Address, Postal Zip Code | 629633 |
Title of 12(b) Security | Ordinary shares, par value $0.00025 per share |
Trading Symbol | MWG |
Security Exchange Name | NYSEAMER |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 24,800,000 |
ICFR Auditor Attestation Flag | false |
Auditor Name | Onestop Assurance PAC |
Auditor Location | Singapore |
Auditor Firm ID | 6732 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 3E Gul Circle |
Entity Address, Country | SG |
Entity Address, Postal Zip Code | 629633 |
City Area Code | +65 |
Local Phone Number | 6287 5252 |
Contact Personnel Name | James Lim Eng Hock |
Contact Personnel Email Address | ir@multiwaysholdings.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,003 | $ 1,533 |
Accounts receivable, net | 8,021 | 5,692 |
Inventories | 31,442 | 32,874 |
Amounts due from related parties | 50 | 12 |
Financial assets available for sales | 325 | |
Deposits, prepayments and other receivables | 3,230 | 5,007 |
Total current assets | 44,071 | 45,118 |
Non-current assets: | ||
Property and equipment, net | 7,218 | 7,720 |
Right-of-use assets | 1,489 | 1,769 |
Deferred tax assets | 8 | 8 |
Total non-current assets | 8,715 | 9,497 |
TOTAL ASSETS | 52,786 | 54,615 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 4,781 | 4,413 |
Customer deposits | 5,884 | 10,427 |
Amounts due to related parties | 17,167 | 15,952 |
Bank borrowings | 8,862 | 7,412 |
Lease liabilities | 3,484 | 1,947 |
Income tax payable | 1,007 | 522 |
Total current liabilities | 41,185 | 40,673 |
Long-term liabilities: | ||
Bank borrowings | 3,175 | 4,914 |
Lease liabilities | 2,114 | 3,670 |
Total long-term liabilities | 5,289 | 8,584 |
TOTAL LIABILITIES | 46,474 | 49,257 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Ordinary share, par value US$0.00025, 400,000,000 shares authorized, 24,800,000 ordinary shares issued and outstanding | 6 | 6 |
Additional paid-in capital | 5,440 | 5,440 |
Retained earnings | 1,235 | 257 |
Non-controlling interest | 50 | |
Accumulated other comprehensive loss | (419) | (345) |
Total shareholders’ equity | 6,312 | 5,358 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 52,786 | $ 54,615 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Ordinary shares, par value | $ 0.00025 | $ 0.00025 | $ 0.00025 |
Ordinary shares, authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Ordinary shares, issued | 24,800,000 | 24,800,000 | 24,800,000 |
Ordinary shares, outstanding | 24,800,000 | 24,800,000 | 24,800,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Revenues, net | $ 38,359 | $ 33,406 | $ 29,886 | |
Cost of revenue | (28,617) | (24,049) | (23,044) | |
Gross profit | 9,742 | 9,357 | 6,842 | |
Operating cost and expenses: | ||||
Selling and distribution | (1,502) | (1,114) | (1,153) | |
General and administrative | (6,745) | (6,609) | (6,294) | |
Total operating cost and expenses | (8,247) | (7,723) | (7,447) | |
Profit/(Loss) from operations | 1,495 | 1,634 | (605) | |
Other income (expense): | ||||
Other expenses | (15) | |||
Gain from disposal of plant and equipment | 2 | 305 | 237 | |
Interest income | [1] | 19 | 14 | |
Interest expense | (748) | (716) | (858) | |
Dividend income | 7 | 1,030 | ||
Government grant | 81 | 109 | 582 | |
Foreign exchange (loss) gain, net | (93) | (44) | 32 | |
Other income | 813 | 724 | 905 | |
Total other income, net | 62 | 397 | 1,927 | |
Income before income taxes | 1,557 | 2,031 | 1,322 | |
Income tax expense | (529) | (230) | (3) | |
NET INCOME | 1,028 | 1,801 | 1,319 | |
Less: Net income attributable to non-controlling interest | (50) | |||
NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY | $ 978 | $ 1,801 | $ 1,319 | |
Net income per share | ||||
Basic and Diluted | $ 0.04 | $ 0.07 | $ 0.05 | |
Weighted average number of ordinary shares outstanding | ||||
Basic and Diluted (‘000) | 24,800 | 24,800 | 24,800 | |
NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY | $ 978 | $ 1,801 | $ 1,319 | |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (74) | (345) | ||
COMPREHENSIVE INCOME | $ 904 | $ 1,456 | $ 1,319 | |
[1]This figure is immaterial |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2019 | $ 6 | $ 5,440 | $ 8,977 | $ 14,423 | ||
Balance, shares at Dec. 31, 2019 | 24,800 | |||||
Net income for the year | 1,319 | 1,319 | ||||
Balance at Dec. 31, 2020 | $ 6 | 5,440 | 10,296 | 15,742 | ||
Balance, shares at Dec. 31, 2020 | 24,800 | |||||
Net income for the year | 1,801 | 1,801 | ||||
Dividends declared to the former shareholders | (11,840) | (11,840) | ||||
Foreign currency translation adjustment | (345) | (345) | ||||
Balance at Dec. 31, 2021 | $ 6 | 5,440 | (345) | 257 | 5,358 | |
Balance, shares at Dec. 31, 2021 | 24,800 | |||||
Net income for the year | 978 | 50 | 1,028 | |||
Foreign currency translation adjustment | (74) | (74) | ||||
Balance at Dec. 31, 2022 | $ 6 | $ 5,440 | $ (419) | $ 1,235 | $ 50 | $ 6,312 |
Balance, shares at Dec. 31, 2022 | 24,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income before tax | $ 1,557 | $ 2,031 | $ 1,322 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property and equipment | 800 | 822 | 1,137 |
Depreciation of right-of-use assets | 828 | 775 | 536 |
Inventories written down | 1,508 | 2,532 | |
Gain on disposal of property and equipment | (2) | (305) | (237) |
Provision (reverse) of impairment of trade receivables | 193 | (110) | (372) |
Change in operating assets and liabilities: | |||
Accounts receivable | (942) | (1,190) | 4,763 |
Inventories | 940 | (2,757) | (5,726) |
Accounts payable and accrued liabilities | 1,887 | (1,329) | (1,475) |
Customer deposits | (4,387) | 5,797 | (958) |
Income tax payable | (41) | 388 | 134 |
Net cash provided by operating activities | 833 | 5,630 | 1,656 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (817) | (637) | |
Proceeds from disposal of property and equipment | 2 | 343 | 72 |
Investment in financial assets available for sales | (325) | ||
Net cash (used in) generated from investing activities | (1,140) | 343 | (565) |
Cash flows from financing activities: | |||
Repayment of bank borrowings | (105) | (3,712) | (388) |
Repayment of lease liabilities | (114) | (1,046) | (511) |
Net cash used in financing activities | (219) | (4,758) | (899) |
Effect on exchange rate change on cash and cash equivalents | (4) | (7) | |
Net change in cash and cash equivalent | (530) | 1,208 | 192 |
BEGINNING OF YEAR | 1,533 | 325 | 133 |
END OF YEAR | 1,003 | 1,533 | 325 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash (paid) refund for income taxes | (40) | 158 | 134 |
Cash paid for interest | $ 748 | $ 717 | $ 858 |
BUSINESS OVERVIEW AND BASIS OF
BUSINESS OVERVIEW AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS OVERVIEW AND BASIS OF PRESENTATION | NOTE-1 BUSINESS OVERVIEW AND BASIS OF PRESENTATION Multi Ways Holdings Limited (“MWH”) is incorporated in the Cayman Islands on June 2, 2022 under the Companies Act as an exempted company with limited liability. The authorized share capital is US$ 100,000 400,000,000 0.00025 MWH, through its subsidiaries (collectively referred to as the “Company”) are mainly engaged in the sale and rental of the heavy construction equipment in Singapore, and global sales primarily generated from the Asia Pacific. The Company has over twenty (20) years of experience in supplying heavy construction equipment and rental businesses in the construction industry. Description of subsidiaries incorporated and controlled by the Company SCHEDULE OF SUBSIDIARIES INCORPORATED AND CONTROLLED Name Background Effective ownership MWE Holdings Limited (“MWE Holdings”) British Virgin Islands company Incorporated on June 15, 2022 Issued and outstanding 1,000 1,000 100 Multi Ways Equipment Pte Ltd (“Multi Ways SG”) Singaporean company Incorporated on August 22, 2002 Issued and outstanding 7,200,002 7,200,002 100 Reorganization Since 2022, the Company completed several transactions for the purposes of a group reorganization, as below:- On August 26, 2022, Mr. James Lim and Precious Choice Global entered into the Acquisition Agreement, pursuant to which Precious Choice Global acquired 352,800 4.9 On August 26, 2022, Mr. James Lim and Ms. Lee NG, Precious Choice Global and MWH entered into a reorganization agreement, pursuant to which Mr. James Lim and Ms. Lee NG and Precious Choice Global transferred their respective 6,627,201 220,001 352,800 8,915,624 459,326 Prior to a group reorganization, MWE Holdings, the holding company of a direct wholly-owned company comprised of Multi Ways SG. MWE Holdings was held as to 95.1 4.9 8,915,625 459,375 During the years presented in these consolidated financial statements, the control of the entities has never changed (always under the control of MWH). Accordingly, the combination has been treated as a corporate restructuring (“Reorganization”) of entities under common control and thus the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. The consolidation of MWH and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE-2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. ● Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). ● Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the years presented. Significant accounting estimates in the period include the allowance for doubtful accounts on accounts and other receivables, impairment loss on inventories, assumptions used in assessing right-of-use assets and impairment of long-lived assets, and deferred tax valuation allowance. The inputs into the management’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Actual results could differ from these estimates. ● Basis of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. ● Non-Controlling Interest The Company reports non-controlling interest in its majority owned subsidiaries in the consolidated balance sheets within the shareholders’ equity section, separately from the Company’s shareholders’ equity. Non-controlling interest represents non-controlling interest holders’ proportionate share of the equity of the Company’s majority-owned subsidiaries. Non-controlling interest is adjusted for non-controlling interest holders’ proportionate share of the earnings or losses and other comprehensive income. ● Foreign Currency Translation and Transaction 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. The reporting currency of the Company is United States Dollar (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company and subsidiaries are operating in Singapore, maintain their books and record in their local currency, Singapore Dollars (“S$”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, Translation of Financial Statement Translation of amounts from S$ into US$ has been made at the following exchange rates for the financial years ended December 31, 2022 and 2021: SCHEDULE OF TRANSLATION OF AMOUNTS EXCHANGE RATES December 31, 2022 December 31, 2021 Year-end S$:US$ exchange rate 1.3722 1.3517 Translation gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred. ● 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. The Company maintains most of its bank accounts in Singapore. ● Restricted Cash Restricted cash held by foreign subsidiaries related to fixed deposits within or more than twelve months that also serve as security deposits and guarantees under the banking facilities. ● Accounts Receivable, net Accounts receivable include trade accounts due from customers in the sale of products. Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms. The normal settlement terms of accounts receivable from insurance companies in the provision of brokerage agency services are within 30 days upon the execution of the insurance policies. The Company seeks to maintain strict control over its outstanding receivables to minimize credit risk. Overdue balances are reviewed regularly by senior management. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate and provides allowance when necessary. The allowance is based on management’s best estimates of specific losses on individual customer exposures, as well as the historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. The Company does not hold any collateral or other credit enhancements overs its accounts receivable balances. ● Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the average cost method. The Company records adjustments to its inventory for estimated obsolescence or diminution in net realizable value equal to the difference between the cost of the inventory and the estimated net realizable value. At the point of loss recognition, a new cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. ● Property and Equipment, net Property 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: SCHEDULE OF PROPERTY AND EQUIPMENT EXPECTED USEFUL LIFE Expected useful life Leasehold building Over the remaining lease term Leasehold improvement Over the remaining lease term Plant and machineries 10 Motor vehicles 5 Office equipment, and furniture and fittings 3 10 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. ● Impairment of Long-Lived Assets In accordance with the provisions of ASC Topic 360, Impairment or Disposal of Long-Lived Assets ● Revenue Recognition (a) Revenues from goods and services provided The Company receives certain portion of its non-interest income from contracts with customers, which are accounted for in accordance with Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) ASC 606-10 provided the following overview of how revenue is recognized from the Company’s contracts with customers: The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price – The transaction price is the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. Step 4: Allocate the transaction price to the performance obligations in the contract – Any entity typically allocates the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation – An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer service to a customer). Majority of the Company’s income is derived from contracts with customers in the sale of products, and as such, the revenue recognized depicts the transfer of promised goods or services to its customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. The Company’s revenue recognition policies are in compliance with ASC 606, as follows: Product sales consist of a single performance obligation that the Company satisfies at a point in time. The Company recognizes product revenue when the following events have occurred: (a) the Company has transferred physical possession of the products, depending upon the method of distribution and shipping terms set forth in the customer contract, (b) the Company has a present right to payment, (c) the customer has legal title to the products, and (d) the customer bears significant risks and rewards of ownership of the products. Based on the Company’s historical practices and shipping terms specified in the sales agreements and invoices, these criteria are generally met when the products are: ● Invoiced; and ● Shipped from the Company’s facilities or warehouse (“Ex-works”, which is the Company’s standard shipping term). For these sales, the Company determines that the customer is able to direct the use of, and obtain substantially all of the benefits from, the products at the time the products are shipped. (b) Revenues from equipment rental The accounting for the types of revenue that are accounted for under Topic 842 is discussed below. Equipment rental business are governed by our standard rental contract. The Company accounts for the rental of heavy construction equipment as operating leases where, lease income from the prospective of lessor is recognized to the Company’s statement of income straight-line basis over the term of the lease once management has determined that the lease payments are reasonably expected to be collected. The performance obligation under these leasing arrangements is to deliver the unit to the customer at their location and ensure that our heavy construction equipment is ready for use, and to ensure that our heavy construction equipment is available for use over the life of the lease contract. Our rental contract periods are on monthly. Our equipment rental business are generally short-term to mid-term in nature and our heavy construction equipment is typically rented for the majority of the time that we own it. The Company records its revenues on product sales, net of GST upon the services are rendered and the title and risk of loss of products are fully transferred to the customers. The Company is subject to GST which is levied on the majority of the products at the rate of 8% on the invoiced value of sales in Singapore. Amounts received as prepayment on future products are recorded as customer deposit and recognized as income when the product is shipped. The Company generally allows a 7 days’ right of return to its customers. For the financial years ended December 31, 2022, 2021 and 2020, the sales returns allowance was approximately $ 4.5 2.2 3.3 Certain larger customers pay in advance for future shipments. These advance payments totaled approximately $ 5.9 10.4 4.7 ● Shipping and Handling Costs No shipping and handling costs are associated with the distribution of the products to the customers which are borne by the Company’s suppliers or distributors during the financial years ended December 31, 2022, 2021 and 2020. ● Sales and Marketing Sales and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was approximately $ 0.03 0.02 0.03 ● Government Grant A government grant or subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and (b) the grant will be received. When the Company receives government grant or subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued expenses, and other long-term liability. The classification of short-term or long-term liabilities is dependent on the management’s expectation of when the conditions attached to the grant can be fulfilled. For the financial years ended December 31, 2022, 2021, and 2020, the Company received government subsidies of approximately $ 0.1 0.1 0.6 ● Comprehensive Income (Loss) 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 For the financial years ended December 31, 2022, 2021 and 2020, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2022, 2021 and 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the relevant tax authorities. ● Leases Effective from January 1, 2020, the Company adopted the guidance of ASC 842, Leases The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. ● Retirement Plan Costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying statements of operation as the related employee service are provided. The Company is required to make contribution to their employees under a government-mandated multi-employer defined contribution pension scheme for its eligible full-times employees in Singapore. The Company is required to contribute a specified percentage of the participants’ relevant income based on their ages and wages level. During the financial years ended December 31, 2022, 2021 and 2020, approximately $ 0.2 0.2 0.2 ● Segment Reporting FASB ASC 280, “ Segment Reporting” ● Related Parties The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. ● Commitments and Contingencies The Company follows the ASC 450-20, Commitments to report accounting for contingencies If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. ● Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist of cash equivalents, restricted cash, accounts receivable. Cash equivalents are maintained with high credit quality institutions, the composition and maturities of which are regularly monitored by management. The Singapore Deposit Protection Board pays compensation up to a limit of S$75,000 (approximately US$55,465) if the bank with which an individual/a company hold its eligible deposit fails 1.0 1.0 For accounts receivable, the Company determines, on a continuing basis, the allowance for doubtful accounts are based on the estimated realizable value. The Company identifies credit risk on a customer-by-customer basis. The information is monitored regularly by management. Concentration of credit risk arises when a group of customers having similar characteristics such that their ability to meet their obligations is expected to be affected similarly by changes in economic conditions. ● Exchange Rate Risk The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in S$ and a significant portion of the assets and liabilities are denominated in S$. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and S$. If S$ depreciates against US$, the value of S$ 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. ● Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it has sufficient cash to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. A key risk in managing liquidity is the degree of uncertainty in the cash flow projections. If future cash flows are fairly uncertain, the liquidity risk increases. ● Fair Value Measurement The Company follows the guidance of the ASC Topic 820-10, Fair Value Measurement and Disclosure ● Level 1 ● Level 2 : ● Level 3 The carrying value of the Company’s financial instruments: cash and cash equivalents, restricted cash, accounts receivable, loans receivable, amount due to a related party, accounts payable, escrow liabilities, 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 note payable approximate the carrying amount. The Company accounts for loans receivable at cost, subject to impairment testing. The Company obtains a third-party valuation based upon loan level data including note rate, type and term of the underlying loans. The Company’s non-marketable equity securities are investments in privately held companies, which are without readily determinable market values and are classified as Level 3, due to the absence of quoted market prices, the inherent lack of liquidity and the fact that inputs used to measure fair value are unobservable and require management’s judgment. 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. ● Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standard Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes Income Taxes In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
DISAGGREGATION OF REVENUE | NOTE- 3 DISAGGREGATION OF REVENUE The following tables present the Company’s revenue disaggregated by business segment and geography, based on management’s assessment of available data: SCHEDULE OF BUSINESS SEGMENT AND GEOGRAPHY Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Sales at a single point in time Equipment Sales 32,202 26,095 22,045 Services 2,354 2,892 2,746 Total sales at a single point in time 34,556 28,987 24,791 Sales over time Rental 3,803 4,419 5,095 Total sales over time 38,359 33,406 29,886 In accordance with ASC 280, Segment Reporting Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Singapore 15,811 13,884 20,874 Australia 9,056 10,064 167 Other countries 13,492 9,458 8,845 Total 38,359 33,406 29,886 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE-4 ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE As of December 31, 2022 2021 $’000 $’000 Accounts receivable – third parties 8,293 5,667 Accounts receivable – related parties 12 108 Less: allowance for doubtful accounts (284 ) (83 ) Accounts receivable, net 8,021 5,692 For the financial years ended December 31, 2022 and 2021, the Company made no allowance for doubtful accounts and charged to the consolidated statements of operations. The Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company generally conducts its business with creditworthy third parties. The Company determines, on a continuing basis, the probable losses and an allowance for doubtful accounts, based on several factors including internal risk ratings, customer credit quality, payment history, historical bad debt/write-off experience and forecasted economic and market conditions. Accounts receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. In addition, receivable balances are monitored on an ongoing basis and its exposure to bad debts is not significant. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE-5 INVENTORIES The Company’s inventories were as follows:- SCHEDULE OF INVENTORIES As of December 31, 2022 2021 $’000 $’000 Finished goods 32,927 34,382 Written down (1,485 ) (1,508 ) Total inventories 31,442 32,874 |
AMOUNTS DUE FROM RELATED PARTIE
AMOUNTS DUE FROM RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Amounts Due From Related Parties | |
AMOUNTS DUE FROM RELATED PARTIES | NOTE-6 AMOUNTS DUE FROM RELATED PARTIES Amounts due from related parties consisted of the following: SCHEDULE OF AMOUNTS DUE FROM RELATED PARTIES As of December 31, 2022 2021 $’000 $’000 Due from related parties: - MWE Investment Pte Ltd (1) 3 - - Multi Ways Holdings Limited 47 - - Yin Zhan Holding Pte Ltd (2) - 12 Due to related parties 50 12 The related party of the Company is as follows: (1) Mr. James Lim, Ms Lee NG and Ms Maggie Lim are the directors, and they are also the shareholders and hold 88% stake in MWE Investment Pte Ltd. (2) Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. The amounts are unsecured, interest-free and repayable on demand. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE-7 PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT As of December 31, 2022 2021 $’000 $’000 At cost: Leasehold buildings 8,089 8,212 Motor vehicles 1,938 1,976 Office equipment, and furniture and fittings 3,032 2,917 Property and equipment, gross 13,059 13,105 Less: accumulated depreciation (5,841 ) (5,385 ) Property and equipment, net 7,218 7,720 Depreciation expense for the financial years ended December 31, 2022 and 2021 were remained at approximately $ 0.8 million and approximately $ 0.8 million respectively. Property and equipment under finance leasing arrangement classified under motor vehicle as of December 31, 2022 and 2021 amounted to approximately $ 0.01 million and approximately $ 0.02 million, respectively. Details of such leased assets are disclosed in Note 10. Right-of-use assets under operating leasing arrangements classified under leasehold building as of December 31, 2022 and 2021 amounted to approximately $ 1.5 million and approximately $ 1.8 million and, respectively. Details of such leased assets are disclosed in Note 10. |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Amounts Due To Related Parties | |
AMOUNTS DUE TO RELATED PARTIES | NOTE-8 AMOUNTS DUE TO RELATED PARTIES Amounts due to related parties consisted of the following: SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES As of December 31, 2022 2021 $’000 $’000 Due to related parties - P4 Engineering Industrial Pte Ltd (1) 907 481 - Yin Zhan Holdings Pte Ltd (2) 510 - Due to directors 15,750 15,471 Due to related parties 17,167 15,952 The entities are related parties of the Company as follows: (1) Mr. James Lim, Ms. Lee NG and Ms. Maggie Lim are the directors of P4 Engineering Industrial Pte Ltd. Mr. James Lim and Ms. Lee NG are the shareholders and they hold 100% in P4 Engineering Industrial Pte Ltd. (2) Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. The amounts are unsecured, interest-free and non-repayable on demand. |
BANK BORROWINGS
BANK BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
BANK BORROWINGS | NOTE-9 BANK BORROWINGS Bank borrowings consisted of the following: SCHEDULE OF BANK BORROWINGS Terms of Annual As of December 31, repayments interest rate 2022 2021 $’000 $’000 Term loans 2 5 years 2.7 3.5 % 2,502 3,844 Trust receipts Within 12 months 2.85 % 6,826 5,278 Bank overdraft Within 12 months 5.25 % 281 - Mortgage loan 10 years 2.77 % 2,428 3,204 Total 12,037 12,326 Representing Within 12 months 8,862 7,412 Over 1 year 3,175 4,914 Total 12,037 12,326 As of December 31, 2022 and 2021, bank borrowings were obtained from several financial institutions in Singapore, which bear annual interest at a fixed rate from 2.7 % to 3.5 % and are repayable in 12 months to 10 years The Company’s bank borrowings are guaranteed under the personal from Mr. James Lim and Ms. Lee NG and mortgage of leasehold property at 22 Gul Avenue, Singapore 629662. |
RIGHT-OF-USE ASSETS
RIGHT-OF-USE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Right-of-use Assets | |
RIGHT-OF-USE ASSETS | NOTE-10 RIGHT-OF-USE ASSETS The Company adopted ASU No. 2016-02, Leases Operating leases are included in the right-of-use lease assets, other current liabilities and long-term lease liabilities on the Consolidated Balance Sheet. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present values of its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, the incremental borrowing rate is used based on information available at the lease’s commencement date to determine the present value of its lease payments. Operating lease payments are recognized on a straight-line basis over the lease term. The Company adopts 3.35% 3 years The table below presents the lease-related assets and liabilities recorded on the balance sheet. SCHEDULE OF BALANCE SHEET CLASSIFICATION 2022 2021 As of December 31, 2022 2021 $’000 $’000 Assets Finance lease, right-of-use asset, net 5 21 Operating lease, right-of-use asset, net 1,489 1,769 Total right-of-use asset 1,494 1,790 Liabilities Current: Finance lease liabilities 3,024 1,472 Operating lease liabilities 460 475 Lease liabilities current 3,484 1,947 Non-current: Finance lease liabilities 991 2,306 Operating lease liabilities 1,123 1,364 Lease liabilities noncurrent 2,114 3,670 Total lease liabilities 5,598 5,617 As of December 31, 2022, right-of-use assets were $ 1.5 lease liabilities 1.6 As of December 31, 2021, right-of-use assets were $ 1.8 lease liabilities 1.8 The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets. The following tables summarize the lease expense for the financial years. SCHEDULE OF LEASE EXPENSE 2022 2021 2020 Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Finance lease cost: Interest on lease liabilities (per ASC 842) 66 77 88 Operating lease cost: Operating lease expense (per ASC 842) 828 775 691 Short-term lease expense (other than ASC 842) 20 4 6 Total lease expense 848 779 697 Components of Lease Expense We recognize lease expense on a straight-line basis over the term of the operating leases, as reported within “general and administrative” expense on the accompanying consolidated statement of operations. Future Contractual Lease Payments as of December 31, 2022 The below table summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments for the next three years ending December 31: SCHEDULE OF FUTURE OF LEASE LIABILITIES Financial Years ending December 31, Operating and finance lease amount $’000 2023 3,658 2024 2,171 Less: interest (231 ) Present value of lease liabilities 5,598 Representing: Current liabilities 3,484 Non-current liabilities 2,114 Total lease payments 5,598 |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE-11 SHAREHOLDERS’ EQUITY Ordinary Shares The Company was established under the laws of Cayman Islands on June 2, 2022 with authorized share of 100,000,000 ordinary shares of par value US$0.001 each. On January 27, 2023, the Company amended its memorandum of association to effect a 1:4 stock split and to change the authorized share capital to $100,000 divided into 400,000,000 ordinary shares, of a par value of $0.00025 each. Concurrently, MWE Investments surrendered 12,077,700 ordinary shares to the Company. Precious Choice Global surrendered 622,300 ordinary shares to the Company. The Company is authorized to issue one class of ordinary share. The holders of the Company’s ordinary share are entitled to the following rights: Voting Rights Dividend Right Liquidation Right Other Matters |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE-12 INCOME TAXES The provision for income taxes consisted of the following: SCHEDULE OF COMPONENTS OF PROVISION FOR INCOME TAX 2022 2021 2020 Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Income tax current year 529 500 137 Over provision for previous years - (270 ) - Deferred tax - - (134 ) Income tax expense 529 230 3 The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company’s subsidiaries mainly operate in Singapore that are subject to taxes in the jurisdictions in which they operate, as follows: BVI MWE is considered to be an exempted British Virgin Islands Company and are presently not subject to income taxes or income tax filing requirements in the British Virgin Islands or the United States. Singapore Multi Ways SG is operating in Singapore and are subject to the Singapore tax law at the corporate tax rate at 17 The reconciliation of income tax rate to the effective income tax rate based on income before income taxes for the financial years ended December 31, 2022, 2021 and 2020 are as follows: SCHEDULE OF RECONCILIATION OF INCOME TAX EXPENSE $’000 $’000 $’000 Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Income before income taxes 1,557 2,031 1,322 Statutory income tax rate 17 % 17 % 17 % Income tax expense at statutory rate 265 345 225 Tax effect of non-taxable income (62 ) - (144 ) Tax effect of non-deductible items 339 156 61 Tax refund - (263 ) - Tax holiday (13 ) (8 ) (139 ) Income tax expense 529 230 3 The following table sets forth the significant components of the deferred tax assets and liabilities of the Company as of December 31, 2022 and 2021: SCHEDULE OF DEFERRED INCOME TAX ASSETS As of December 31, 2022 2021 $’000 $’000 Deferred tax asset: Accelerated tax depreciation 8 8 Uncertain tax positions The Company evaluates the uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2021, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the financial years ended December 31, 2022, 2021 and 2020 and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2022. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE-13 RELATED PARTY TRANSACTIONS In the ordinary course of business, during the financial years ended December 31, 2022, 2021 and 2020, the Company was involved in certain transactions, either at cost or current market prices, and on the normal commercial terms with related parties. The following table provides the transactions with these parties for the financial years as presented (for the portion of such period that they were considered related): SCHEDULE OF NATURE OF TRANSACTIONS 2022 2021 2020 Financial Years ended December 31, 2022 2021 2020 Nature of transactions $’000 $’000 $’000 P4 Engineering Industrial Pte Ltd (1) - Sale of goods (1) - 414 891 - Purchases of goods (1) 945 640 1,906 - Land rental (1) 404 207 506 Multi Ways Equipment Sdn Bhd (2) - Sale of goods (2) - 151 1 MWE Investment Pte Ltd (3) - Sale of goods (3) 11 - - Yin Zhan Holding Pte Ltd (4) - Sale of goods (4) - 5 488 - Purchases of goods (4) 413 81 1,632 These related parties are controlled by the common directors and officers of the Company. (1) Mr. James Lim, Ms. Lee NG and Ms. Maggie Lim are the directors of P4 Engineering Industrial Pte Ltd. Mr. James Lim and Ms. Lee NG are the shareholders and they hold 100% in P4 Engineering Industrial Pte Ltd. (2) Ms. Maggie Lim and Mr. Nick Tan are the directors. Ms. Maggie Lim, Mr. Nick Tan and Mr. James Lim are the shareholders and hold 100% in Multi Ways Equipment Sdn Bhd. (3) Mr. James Lim, Ms Lee NG and Ms Maggie Lim are the directors, and they are also the shareholders and hold 88% stake in MWE Investment Pte Ltd. (4) Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. Apart from the transactions and balances detailed elsewhere in these accompanying consolidated financial statements, the Company has no other significant or material related party transactions during the financial years presented. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | NOTE-14 CONCENTRATIONS OF RISK The Company is exposed to the following concentrations of risk: (a) Major customers For the financial year ended December 31, 2022, there was a single customer who accounted approximately for 20.6 For the financial year ended December 31, 2021, there was a single customer who accounted approximately for 28.8 For the financial year ended December 31, 2020, there was one single customer who accounted approximately for 7.7 (a) Major vendors For the financial year ended December 31, 2022, 2021 and 2020, the vendor who accounted for 15.2 %, 19.4 % and Nil respectively, or more of the Company’s purchases and its outstanding payable balances as at year end date, is presented as follows: SCHEDULES OF COMPANY’S PURCHASES AND ITS OUTSTANDING PAYABLE BALANCES 2022 2021 2020 Percentage of purchases Accounts payable Percentage of purchases Accounts payable Percentage of purchases Accounts payable % $’000 % $’000 % $’000 Vendor A 15.2 - 19.4 2,325 - - (b) Credit risk Financial instruments that potentially subject the Company to credit risk consist of cash equivalents, restricted cash, accounts and loans receivable. Cash equivalents are maintained with high credit quality institutions, the composition and maturities of which are regularly monitored by management. The Singapore Deposit Protection Board pays compensation up to a limit of S$ 75,000 55,465 1.0 1.0 For accounts receivable, the Company determines, on a continuing basis, the probable losses and sets up an allowance for doubtful accounts based on the estimated realizable value. The Company has adopted a policy of only dealing with creditworthy counterparties. The Company performs ongoing credit evaluation of its counterparties’ financial condition and generally do not require a collateral. The Company also considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. The Company has determined the default event on a financial asset to be when internal and/or external information indicates that the financial asset is unlikely to be received, which could include default of contractual payments due for more than 90 days, default of interest due for more than 365 days or there is significant difficulty of the counterparty. To minimize credit risk, the Company has developed and maintained its credit risk grading to categorize exposures according to their degree of risk of default. The credit rating information is supplied by publicly available financial information and the Company’s own trading records to rate its major customers and other debtors. The Company considers available reasonable and supportive forward-looking information which includes the following indicators: ● Actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the debtor’s ability to meet its obligations; ● Internal credit rating; and ● External credit rating and when necessary. Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days past due in making contractual payment. As of December 31, 2022, there was no outstanding from a single customer whose account receivable balances of total consolidated amounts. As of December 31, 2021, there was no outstanding from a single customer whose account receivable balances of total consolidated amounts. As of December 31, 2020, there was no outstanding from a single customer whose account receivable balances of total consolidated amounts. (c) Interest rate risk As the Company has no significant interest-bearing assets, the Company’s income and operating cash flows are substantially independent of changes in market interest rates. The Company’s interest-rate risk arises from bank borrowings. The Company manages interest rate risk by varying the issuance and maturity dates of variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of December 31, 2022, 2021 and 2020, the borrowings were at fixed interest rates. (d) Economic and political risk The Company’s major operations are conducted in Singapore. Accordingly, the political, economic, and legal environments in Singapore, as well as the general state of Singapore’s economy may influence the Company’s business, financial condition, and results of operations. (e) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady, therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of S$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. (f) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it has sufficient cash to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. A key risk in managing liquidity is the degree of uncertainty in the cash flow projections. If future cash flows are fairly uncertain, the liquidity risk increases. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE-15 COMMITMENTS AND CONTINGENCIES Litigation — As of December 31, 2022 and 2021, the Company has no material commitments or contingencies. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE-16 SUBSEQUENT EVENTS In accordance with ASC Topic 855, “ Subsequent Events |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | ● Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of Estimates and Assumptions | ● Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the years presented. Significant accounting estimates in the period include the allowance for doubtful accounts on accounts and other receivables, impairment loss on inventories, assumptions used in assessing right-of-use assets and impairment of long-lived assets, and deferred tax valuation allowance. The inputs into the management’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Actual results could differ from these estimates. |
Basis of Consolidation | ● Basis of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Non-Controlling Interest | ● Non-Controlling Interest The Company reports non-controlling interest in its majority owned subsidiaries in the consolidated balance sheets within the shareholders’ equity section, separately from the Company’s shareholders’ equity. Non-controlling interest represents non-controlling interest holders’ proportionate share of the equity of the Company’s majority-owned subsidiaries. Non-controlling interest is adjusted for non-controlling interest holders’ proportionate share of the earnings or losses and other comprehensive income. |
Foreign Currency Translation and Transaction | ● Foreign Currency Translation and Transaction 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. The reporting currency of the Company is United States Dollar (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company and subsidiaries are operating in Singapore, maintain their books and record in their local currency, Singapore Dollars (“S$”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, Translation of Financial Statement Translation of amounts from S$ into US$ has been made at the following exchange rates for the financial years ended December 31, 2022 and 2021: SCHEDULE OF TRANSLATION OF AMOUNTS EXCHANGE RATES December 31, 2022 December 31, 2021 Year-end S$:US$ exchange rate 1.3722 1.3517 Translation gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred. |
Cash and Cash Equivalents | ● 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. The Company maintains most of its bank accounts in Singapore. |
Restricted Cash | ● Restricted Cash Restricted cash held by foreign subsidiaries related to fixed deposits within or more than twelve months that also serve as security deposits and guarantees under the banking facilities. |
Accounts Receivable, net | ● Accounts Receivable, net Accounts receivable include trade accounts due from customers in the sale of products. Accounts receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms. The normal settlement terms of accounts receivable from insurance companies in the provision of brokerage agency services are within 30 days upon the execution of the insurance policies. The Company seeks to maintain strict control over its outstanding receivables to minimize credit risk. Overdue balances are reviewed regularly by senior management. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate and provides allowance when necessary. The allowance is based on management’s best estimates of specific losses on individual customer exposures, as well as the historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. The Company does not hold any collateral or other credit enhancements overs its accounts receivable balances. |
Inventories | ● Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the average cost method. The Company records adjustments to its inventory for estimated obsolescence or diminution in net realizable value equal to the difference between the cost of the inventory and the estimated net realizable value. At the point of loss recognition, a new cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. |
Property and Equipment, net | ● Property and Equipment, net Property 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: SCHEDULE OF PROPERTY AND EQUIPMENT EXPECTED USEFUL LIFE Expected useful life Leasehold building Over the remaining lease term Leasehold improvement Over the remaining lease term Plant and machineries 10 Motor vehicles 5 Office equipment, and furniture and fittings 3 10 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. |
Impairment of Long-Lived Assets | ● Impairment of Long-Lived Assets In accordance with the provisions of ASC Topic 360, Impairment or Disposal of Long-Lived Assets |
Revenue Recognition | ● Revenue Recognition (a) Revenues from goods and services provided The Company receives certain portion of its non-interest income from contracts with customers, which are accounted for in accordance with Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) ASC 606-10 provided the following overview of how revenue is recognized from the Company’s contracts with customers: The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price – The transaction price is the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. Step 4: Allocate the transaction price to the performance obligations in the contract – Any entity typically allocates the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation – An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer service to a customer). Majority of the Company’s income is derived from contracts with customers in the sale of products, and as such, the revenue recognized depicts the transfer of promised goods or services to its customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. The Company’s revenue recognition policies are in compliance with ASC 606, as follows: Product sales consist of a single performance obligation that the Company satisfies at a point in time. The Company recognizes product revenue when the following events have occurred: (a) the Company has transferred physical possession of the products, depending upon the method of distribution and shipping terms set forth in the customer contract, (b) the Company has a present right to payment, (c) the customer has legal title to the products, and (d) the customer bears significant risks and rewards of ownership of the products. Based on the Company’s historical practices and shipping terms specified in the sales agreements and invoices, these criteria are generally met when the products are: ● Invoiced; and ● Shipped from the Company’s facilities or warehouse (“Ex-works”, which is the Company’s standard shipping term). For these sales, the Company determines that the customer is able to direct the use of, and obtain substantially all of the benefits from, the products at the time the products are shipped. (b) Revenues from equipment rental The accounting for the types of revenue that are accounted for under Topic 842 is discussed below. Equipment rental business are governed by our standard rental contract. The Company accounts for the rental of heavy construction equipment as operating leases where, lease income from the prospective of lessor is recognized to the Company’s statement of income straight-line basis over the term of the lease once management has determined that the lease payments are reasonably expected to be collected. The performance obligation under these leasing arrangements is to deliver the unit to the customer at their location and ensure that our heavy construction equipment is ready for use, and to ensure that our heavy construction equipment is available for use over the life of the lease contract. Our rental contract periods are on monthly. Our equipment rental business are generally short-term to mid-term in nature and our heavy construction equipment is typically rented for the majority of the time that we own it. The Company records its revenues on product sales, net of GST upon the services are rendered and the title and risk of loss of products are fully transferred to the customers. The Company is subject to GST which is levied on the majority of the products at the rate of 8% on the invoiced value of sales in Singapore. Amounts received as prepayment on future products are recorded as customer deposit and recognized as income when the product is shipped. The Company generally allows a 7 days’ right of return to its customers. For the financial years ended December 31, 2022, 2021 and 2020, the sales returns allowance was approximately $ 4.5 2.2 3.3 Certain larger customers pay in advance for future shipments. These advance payments totaled approximately $ 5.9 10.4 4.7 |
Shipping and Handling Costs | ● Shipping and Handling Costs No shipping and handling costs are associated with the distribution of the products to the customers which are borne by the Company’s suppliers or distributors during the financial years ended December 31, 2022, 2021 and 2020. |
Sales and Marketing | ● Sales and Marketing Sales and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was approximately $ 0.03 0.02 0.03 |
Government Grant | ● Government Grant A government grant or subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and (b) the grant will be received. When the Company receives government grant or subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued expenses, and other long-term liability. The classification of short-term or long-term liabilities is dependent on the management’s expectation of when the conditions attached to the grant can be fulfilled. For the financial years ended December 31, 2022, 2021, and 2020, the Company received government subsidies of approximately $ 0.1 0.1 0.6 |
Comprehensive Income (Loss) | ● Comprehensive Income (Loss) ASC Topic 220, Comprehensive Income |
Income Taxes | ● 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 For the financial years ended December 31, 2022, 2021 and 2020, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2022, 2021 and 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the relevant tax authorities. |
Leases | ● Leases Effective from January 1, 2020, the Company adopted the guidance of ASC 842, Leases The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. |
Retirement Plan Costs | ● Retirement Plan Costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying statements of operation as the related employee service are provided. The Company is required to make contribution to their employees under a government-mandated multi-employer defined contribution pension scheme for its eligible full-times employees in Singapore. The Company is required to contribute a specified percentage of the participants’ relevant income based on their ages and wages level. During the financial years ended December 31, 2022, 2021 and 2020, approximately $ 0.2 0.2 0.2 |
Segment Reporting | ● Segment Reporting FASB ASC 280, “ Segment Reporting” |
Related Parties | ● Related Parties The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and Contingencies | ● Commitments and Contingencies The Company follows the ASC 450-20, Commitments to report accounting for contingencies If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Concentration of Credit Risk | ● Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist of cash equivalents, restricted cash, accounts receivable. Cash equivalents are maintained with high credit quality institutions, the composition and maturities of which are regularly monitored by management. The Singapore Deposit Protection Board pays compensation up to a limit of S$75,000 (approximately US$55,465) if the bank with which an individual/a company hold its eligible deposit fails 1.0 1.0 For accounts receivable, the Company determines, on a continuing basis, the allowance for doubtful accounts are based on the estimated realizable value. The Company identifies credit risk on a customer-by-customer basis. The information is monitored regularly by management. Concentration of credit risk arises when a group of customers having similar characteristics such that their ability to meet their obligations is expected to be affected similarly by changes in economic conditions. |
Exchange Rate Risk | ● Exchange Rate Risk The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in S$ and a significant portion of the assets and liabilities are denominated in S$. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and S$. If S$ depreciates against US$, the value of S$ 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. |
Liquidity Risk | ● Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it has sufficient cash to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. A key risk in managing liquidity is the degree of uncertainty in the cash flow projections. If future cash flows are fairly uncertain, the liquidity risk increases. |
Fair Value Measurement | ● Fair Value Measurement The Company follows the guidance of the ASC Topic 820-10, Fair Value Measurement and Disclosure ● Level 1 ● Level 2 : ● Level 3 The carrying value of the Company’s financial instruments: cash and cash equivalents, restricted cash, accounts receivable, loans receivable, amount due to a related party, accounts payable, escrow liabilities, 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 note payable approximate the carrying amount. The Company accounts for loans receivable at cost, subject to impairment testing. The Company obtains a third-party valuation based upon loan level data including note rate, type and term of the underlying loans. The Company’s non-marketable equity securities are investments in privately held companies, which are without readily determinable market values and are classified as Level 3, due to the absence of quoted market prices, the inherent lack of liquidity and the fact that inputs used to measure fair value are unobservable and require management’s judgment. 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. |
Recently Issued Accounting Pronouncements | ● Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standard Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes Income Taxes In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
BUSINESS OVERVIEW AND BASIS O_2
BUSINESS OVERVIEW AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF SUBSIDIARIES INCORPORATED AND CONTROLLED | Description of subsidiaries incorporated and controlled by the Company SCHEDULE OF SUBSIDIARIES INCORPORATED AND CONTROLLED Name Background Effective ownership MWE Holdings Limited (“MWE Holdings”) British Virgin Islands company Incorporated on June 15, 2022 Issued and outstanding 1,000 1,000 100 Multi Ways Equipment Pte Ltd (“Multi Ways SG”) Singaporean company Incorporated on August 22, 2002 Issued and outstanding 7,200,002 7,200,002 100 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF TRANSLATION OF AMOUNTS EXCHANGE RATES | Translation of amounts from S$ into US$ has been made at the following exchange rates for the financial years ended December 31, 2022 and 2021: SCHEDULE OF TRANSLATION OF AMOUNTS EXCHANGE RATES December 31, 2022 December 31, 2021 Year-end S$:US$ exchange rate 1.3722 1.3517 |
SCHEDULE OF PROPERTY AND EQUIPMENT EXPECTED USEFUL LIFE | SCHEDULE OF PROPERTY AND EQUIPMENT EXPECTED USEFUL LIFE Expected useful life Leasehold building Over the remaining lease term Leasehold improvement Over the remaining lease term Plant and machineries 10 Motor vehicles 5 Office equipment, and furniture and fittings 3 10 |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF BUSINESS SEGMENT AND GEOGRAPHY | The following tables present the Company’s revenue disaggregated by business segment and geography, based on management’s assessment of available data: SCHEDULE OF BUSINESS SEGMENT AND GEOGRAPHY Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Sales at a single point in time Equipment Sales 32,202 26,095 22,045 Services 2,354 2,892 2,746 Total sales at a single point in time 34,556 28,987 24,791 Sales over time Rental 3,803 4,419 5,095 Total sales over time 38,359 33,406 29,886 In accordance with ASC 280, Segment Reporting Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Singapore 15,811 13,884 20,874 Australia 9,056 10,064 167 Other countries 13,492 9,458 8,845 Total 38,359 33,406 29,886 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable, net consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE As of December 31, 2022 2021 $’000 $’000 Accounts receivable – third parties 8,293 5,667 Accounts receivable – related parties 12 108 Less: allowance for doubtful accounts (284 ) (83 ) Accounts receivable, net 8,021 5,692 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | The Company’s inventories were as follows:- SCHEDULE OF INVENTORIES As of December 31, 2022 2021 $’000 $’000 Finished goods 32,927 34,382 Written down (1,485 ) (1,508 ) Total inventories 31,442 32,874 |
AMOUNTS DUE FROM RELATED PART_2
AMOUNTS DUE FROM RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Amounts Due From Related Parties | |
SCHEDULE OF AMOUNTS DUE FROM RELATED PARTIES | Amounts due from related parties consisted of the following: SCHEDULE OF AMOUNTS DUE FROM RELATED PARTIES As of December 31, 2022 2021 $’000 $’000 Due from related parties: - MWE Investment Pte Ltd (1) 3 - - Multi Ways Holdings Limited 47 - - Yin Zhan Holding Pte Ltd (2) - 12 Due to related parties 50 12 The related party of the Company is as follows: (1) Mr. James Lim, Ms Lee NG and Ms Maggie Lim are the directors, and they are also the shareholders and hold 88% stake in MWE Investment Pte Ltd. (2) Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT As of December 31, 2022 2021 $’000 $’000 At cost: Leasehold buildings 8,089 8,212 Motor vehicles 1,938 1,976 Office equipment, and furniture and fittings 3,032 2,917 Property and equipment, gross 13,059 13,105 Less: accumulated depreciation (5,841 ) (5,385 ) Property and equipment, net 7,218 7,720 |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Amounts Due To Related Parties | |
SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES | Amounts due to related parties consisted of the following: SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES As of December 31, 2022 2021 $’000 $’000 Due to related parties - P4 Engineering Industrial Pte Ltd (1) 907 481 - Yin Zhan Holdings Pte Ltd (2) 510 - Due to directors 15,750 15,471 Due to related parties 17,167 15,952 The entities are related parties of the Company as follows: (1) Mr. James Lim, Ms. Lee NG and Ms. Maggie Lim are the directors of P4 Engineering Industrial Pte Ltd. Mr. James Lim and Ms. Lee NG are the shareholders and they hold 100% in P4 Engineering Industrial Pte Ltd. (2) Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. The amounts are unsecured, interest-free and non-repayable on demand. |
BANK BORROWINGS (Tables)
BANK BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
SCHEDULE OF BANK BORROWINGS | Bank borrowings consisted of the following: SCHEDULE OF BANK BORROWINGS Terms of Annual As of December 31, repayments interest rate 2022 2021 $’000 $’000 Term loans 2 5 years 2.7 3.5 % 2,502 3,844 Trust receipts Within 12 months 2.85 % 6,826 5,278 Bank overdraft Within 12 months 5.25 % 281 - Mortgage loan 10 years 2.77 % 2,428 3,204 Total 12,037 12,326 Representing Within 12 months 8,862 7,412 Over 1 year 3,175 4,914 Total 12,037 12,326 |
RIGHT-OF-USE ASSETS (Tables)
RIGHT-OF-USE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Right-of-use Assets | |
SCHEDULE OF BALANCE SHEET CLASSIFICATION | The table below presents the lease-related assets and liabilities recorded on the balance sheet. SCHEDULE OF BALANCE SHEET CLASSIFICATION 2022 2021 As of December 31, 2022 2021 $’000 $’000 Assets Finance lease, right-of-use asset, net 5 21 Operating lease, right-of-use asset, net 1,489 1,769 Total right-of-use asset 1,494 1,790 Liabilities Current: Finance lease liabilities 3,024 1,472 Operating lease liabilities 460 475 Lease liabilities current 3,484 1,947 Non-current: Finance lease liabilities 991 2,306 Operating lease liabilities 1,123 1,364 Lease liabilities noncurrent 2,114 3,670 Total lease liabilities 5,598 5,617 |
SCHEDULE OF LEASE EXPENSE | The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets. The following tables summarize the lease expense for the financial years. SCHEDULE OF LEASE EXPENSE 2022 2021 2020 Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Finance lease cost: Interest on lease liabilities (per ASC 842) 66 77 88 Operating lease cost: Operating lease expense (per ASC 842) 828 775 691 Short-term lease expense (other than ASC 842) 20 4 6 Total lease expense 848 779 697 |
SCHEDULE OF FUTURE OF LEASE LIABILITIES | The below table summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments for the next three years ending December 31: SCHEDULE OF FUTURE OF LEASE LIABILITIES Financial Years ending December 31, Operating and finance lease amount $’000 2023 3,658 2024 2,171 Less: interest (231 ) Present value of lease liabilities 5,598 Representing: Current liabilities 3,484 Non-current liabilities 2,114 Total lease payments 5,598 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF PROVISION FOR INCOME TAX | The provision for income taxes consisted of the following: SCHEDULE OF COMPONENTS OF PROVISION FOR INCOME TAX 2022 2021 2020 Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Income tax current year 529 500 137 Over provision for previous years - (270 ) - Deferred tax - - (134 ) Income tax expense 529 230 3 |
SCHEDULE OF RECONCILIATION OF INCOME TAX EXPENSE | The reconciliation of income tax rate to the effective income tax rate based on income before income taxes for the financial years ended December 31, 2022, 2021 and 2020 are as follows: SCHEDULE OF RECONCILIATION OF INCOME TAX EXPENSE $’000 $’000 $’000 Financial Years ended December 31, 2022 2021 2020 $’000 $’000 $’000 Income before income taxes 1,557 2,031 1,322 Statutory income tax rate 17 % 17 % 17 % Income tax expense at statutory rate 265 345 225 Tax effect of non-taxable income (62 ) - (144 ) Tax effect of non-deductible items 339 156 61 Tax refund - (263 ) - Tax holiday (13 ) (8 ) (139 ) Income tax expense 529 230 3 |
SCHEDULE OF DEFERRED INCOME TAX ASSETS | The following table sets forth the significant components of the deferred tax assets and liabilities of the Company as of December 31, 2022 and 2021: SCHEDULE OF DEFERRED INCOME TAX ASSETS As of December 31, 2022 2021 $’000 $’000 Deferred tax asset: Accelerated tax depreciation 8 8 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF NATURE OF TRANSACTIONS | SCHEDULE OF NATURE OF TRANSACTIONS 2022 2021 2020 Financial Years ended December 31, 2022 2021 2020 Nature of transactions $’000 $’000 $’000 P4 Engineering Industrial Pte Ltd (1) - Sale of goods (1) - 414 891 - Purchases of goods (1) 945 640 1,906 - Land rental (1) 404 207 506 Multi Ways Equipment Sdn Bhd (2) - Sale of goods (2) - 151 1 MWE Investment Pte Ltd (3) - Sale of goods (3) 11 - - Yin Zhan Holding Pte Ltd (4) - Sale of goods (4) - 5 488 - Purchases of goods (4) 413 81 1,632 These related parties are controlled by the common directors and officers of the Company. (1) Mr. James Lim, Ms. Lee NG and Ms. Maggie Lim are the directors of P4 Engineering Industrial Pte Ltd. Mr. James Lim and Ms. Lee NG are the shareholders and they hold 100% in P4 Engineering Industrial Pte Ltd. (2) Ms. Maggie Lim and Mr. Nick Tan are the directors. Ms. Maggie Lim, Mr. Nick Tan and Mr. James Lim are the shareholders and hold 100% in Multi Ways Equipment Sdn Bhd. (3) Mr. James Lim, Ms Lee NG and Ms Maggie Lim are the directors, and they are also the shareholders and hold 88% stake in MWE Investment Pte Ltd. (4) Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
SCHEDULES OF COMPANY’S PURCHASES AND ITS OUTSTANDING PAYABLE BALANCES | SCHEDULES OF COMPANY’S PURCHASES AND ITS OUTSTANDING PAYABLE BALANCES 2022 2021 2020 Percentage of purchases Accounts payable Percentage of purchases Accounts payable Percentage of purchases Accounts payable % $’000 % $’000 % $’000 Vendor A 15.2 - 19.4 2,325 - - |
SCHEDULE OF SUBSIDIARIES INCORP
SCHEDULE OF SUBSIDIARIES INCORPORATED AND CONTROLLED (Details) $ in Thousands, $ in Thousands | Jun. 15, 2022 USD ($) shares | Aug. 22, 2002 SGD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 shares |
Ordinary shares issued | 24,800,000 | 24,800,000 | 24,800,000 | ||
Ordinary shares outstanding | 24,800,000 | 24,800,000 | 24,800,000 | ||
Ordinary shares, value | $ | $ 6 | $ 6 | |||
MWE Holdings Limited [Member] | |||||
Background | British Virgin Islands company Incorporated on June 15, 2022 Issued and outstanding 1,000 ordinary shares for US$1,000 Investment holding Provision of investment holding | ||||
Ordinary shares issued | 1,000 | ||||
Ordinary shares outstanding | 1,000 | ||||
Ordinary shares, value | $ | $ 1,000 | ||||
Effective ownership | 100% | ||||
Multi Ways Equipment Pte Ltd [Member] | |||||
Background | Singaporean company Incorporated on August 22, 2002 Issued and outstanding 7,200,002 ordinary shares for S$7,200,002 Wholesale and retail trading and renting of industrial machinery and equipment | ||||
Ordinary shares issued | 7,200,002 | ||||
Ordinary shares outstanding | 7,200,002 | ||||
Ordinary shares, value | $ | $ 7,200,002 | ||||
Effective ownership | 100% |
BUSINESS OVERVIEW AND BASIS O_3
BUSINESS OVERVIEW AND BASIS OF PRESENTATION (Details Narrative) - $ / shares | Aug. 26, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Authorized share capital | 100,000,000 | |||
Common stock shares authorized | 400,000,000 | 400,000,000 | 400,000,000 | |
Common stock, par value | $ 0.00025 | $ 0.00025 | $ 0.00025 | |
Acquisition Agreement [Member] | Precious Choice Global [Member] | Multi Ways SG [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Ownership percentage | 4.90% | |||
Acquisition Agreement [Member] | Precious Choice Global [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Transfer of shares | 352,800 | |||
Reorganization Agreement [Member] | MWE Investment [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Ownership percentage | 95.10% | |||
Ownership shares | 8,915,625 | |||
Reorganization Agreement [Member] | Precious Choice Global [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Ownership percentage | 4.90% | |||
Ownership shares | 459,375 | |||
Reorganization Agreement [Member] | Precious Choice Global [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Consideration is settled and issued | 459,326 | |||
Reorganization Agreement [Member] | MWE Investments [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Consideration is settled and issued | 8,915,624 | |||
Reorganization Agreement [Member] | Precious Choice Global [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Transfer of shares | 352,800 | |||
Reorganization Agreement [Member] | MWE Holdings [Member] | Mr James Lim [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Transfer of shares | 6,627,201 | |||
Reorganization Agreement [Member] | MWE Holdings [Member] | Ms Lee NG [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Transfer of shares | 220,001 |
SCHEDULE OF TRANSLATION OF AMOU
SCHEDULE OF TRANSLATION OF AMOUNTS EXCHANGE RATES (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Year-end S$:US$ exchange rate | 1.3722 | 1.3517 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT EXPECTED USEFUL LIFE (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Leasehold Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Over the remaining lease term |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Over the remaining lease term |
Plant And Machineries [Member] | |
Property, Plant and Equipment [Line Items] | |
Expected useful life | 10 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Expected useful life | 5 years |
Office Equipment and Furniture and Fittings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Expected useful life | 3 years |
Office Equipment and Furniture and Fittings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Expected useful life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Sales return allowance | $ 4,500 | $ 2,200 | $ 3,300 |
Advance payments | 5,884 | 10,427 | 4,700 |
Advertising expense | 30 | 20 | 30 |
Government grant | $ 81 | 109 | 582 |
Income tax examination likelihood percentage | greater than 50% likelihood | ||
Concentration risk lender | The Singapore Deposit Protection Board pays compensation up to a limit of S$75,000 (approximately US$55,465) if the bank with which an individual/a company hold its eligible deposit fails | ||
Bank and cash balances | $ 1,003 | 1,533 | |
Credit risk | 1,000 | ||
Postemployment Retirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 200 | $ 200 | $ 200 |
SCHEDULE OF BUSINESS SEGMENT AN
SCHEDULE OF BUSINESS SEGMENT AND GEOGRAPHY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total | $ 38,359 | $ 33,406 | $ 29,886 |
SINGAPORE | |||
Disaggregation of Revenue [Line Items] | |||
Total | 15,811 | 13,884 | 20,874 |
AUSTRALIA | |||
Disaggregation of Revenue [Line Items] | |||
Total | 9,056 | 10,064 | 167 |
Other Countries [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | 13,492 | 9,458 | 8,845 |
Equipment Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | 32,202 | 26,095 | 22,045 |
Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | 2,354 | 2,892 | 2,746 |
Sales At A Single Point In Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | 34,556 | 28,987 | 24,791 |
Rental [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | $ 3,803 | $ 4,419 | $ 5,095 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Credit Loss [Abstract] | ||
Accounts receivable – third parties | $ 8,293 | $ 5,667 |
Accounts receivable – related parties | 12 | 108 |
Less: allowance for doubtful accounts | (284) | (83) |
Accounts receivable, net | $ 8,021 | $ 5,692 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 32,927 | $ 34,382 |
Written down | (1,485) | (1,508) |
Total inventories | $ 31,442 | $ 32,874 |
SCHEDULE OF AMOUNTS DUE FROM RE
SCHEDULE OF AMOUNTS DUE FROM RELATED PARTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Due to related parties | $ 50 | $ 12 | |
MWE Investment Pte Ltd [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Due to related parties | [1] | 3 | |
Parent Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Due to related parties | 47 | ||
YinZhan Holding Pte Ltd [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Due to related parties | [2] | $ 12 | |
[1]Mr. James Lim, Ms Lee NG and Ms Maggie Lim are the directors, and they are also the shareholders and hold 88% stake in MWE Investment Pte Ltd.[2]Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 13,059 | $ 13,105 |
Less: accumulated depreciation | (5,841) | (5,385) |
Property and equipment, net | 7,218 | 7,720 |
Leasehold Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,089 | 8,212 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,938 | 1,976 |
Office Equipment and Furniture and Fittings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,032 | $ 2,917 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 800 | $ 822 | $ 1,137 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | 10 | 20 | |
Operating Lease, Right-of-Use Asset | $ 1,489 | $ 1,769 |
SCHEDULE OF AMOUNTS DUE TO RELA
SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Due to related parties | $ 17,167 | $ 15,952 | |
P4 Engineering Industrial Pte Ltd [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Due to related parties | [1] | 907 | 481 |
YinZhan Holding Pte Ltd [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Due to related parties | [2] | 510 | |
Director [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Due to related parties | $ 15,750 | $ 15,471 | |
[1]Mr. James Lim, Ms. Lee NG and Ms. Maggie Lim are the directors of P4 Engineering Industrial Pte Ltd. Mr. James Lim and Ms. Lee NG are the shareholders and they hold 100% in P4 Engineering Industrial Pte Ltd.[2]Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. |
SCHEDULE OF BANK BORROWINGS (De
SCHEDULE OF BANK BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Short-Term Debt [Line Items] | ||
Total | $ 12,037 | $ 12,326 |
Within 12 months [Member] | ||
Short-Term Debt [Line Items] | ||
Total | 8,862 | 7,412 |
Over 1 Year [Member] | ||
Short-Term Debt [Line Items] | ||
Total | $ 3,175 | $ 4,914 |
Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Terms of repayments | 12 months | 12 months |
Annual interest rate | 2.70% | 2.70% |
Maximum [Member] | ||
Short-Term Debt [Line Items] | ||
Terms of repayments | 10 years, and bank overdraft at 5.25% from financial institution in Singapore. | 10 years |
Annual interest rate | 3.50% | 3.50% |
Term Loan [Member] | ||
Short-Term Debt [Line Items] | ||
Total | $ 2,502 | $ 3,844 |
Term Loan [Member] | Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Terms of repayments | 2 years | |
Annual interest rate | 2.70% | |
Term Loan [Member] | Maximum [Member] | ||
Short-Term Debt [Line Items] | ||
Terms of repayments | 5 years | |
Annual interest rate | 3.50% | |
Trust Receipts [Member] | ||
Short-Term Debt [Line Items] | ||
Total | $ 6,826 | 5,278 |
Terms of repayments | Within 12 months | |
Annual interest rate | 2.85% | |
Bank Overdraft [Member] | ||
Short-Term Debt [Line Items] | ||
Total | $ 281 | |
Terms of repayments | Within 12 months | |
Annual interest rate | 5.25% | |
Mortgage Loan [Member] | ||
Short-Term Debt [Line Items] | ||
Total | $ 2,428 | $ 3,204 |
Terms of repayments | 10 years | |
Annual interest rate | 2.77% |
BANK BORROWINGS (Details Narrat
BANK BORROWINGS (Details Narrative) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum [Member] | ||
Annual interest rate | 2.70% | 2.70% |
Terms of repayments | 12 months | 12 months |
Maximum [Member] | ||
Annual interest rate | 3.50% | 3.50% |
Terms of repayments | 10 years, and bank overdraft at 5.25% from financial institution in Singapore. | 10 years |
SCHEDULE OF BALANCE SHEET CLASS
SCHEDULE OF BALANCE SHEET CLASSIFICATION (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Right-of-use Assets | |||
Finance lease, right-of-use asset, net (classified under property and equipment, net) | $ 5 | $ 21 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net | Property and equipment, net |
Operating lease, right-of-use asset, net | $ 1,489 | $ 1,769 | |
Total right-of-use asset | 1,494 | 1,790 | |
Finance lease liabilities | $ 3,024 | $ 1,472 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liabilities current | Lease liabilities current | Lease liabilities current |
Operating lease liabilities | $ 460 | $ 475 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liabilities current | Lease liabilities current | Lease liabilities current |
Lease liabilities current | $ 3,484 | $ 1,947 | |
Finance lease liabilities | $ 991 | $ 2,306 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities noncurrent | Lease liabilities noncurrent | Lease liabilities noncurrent |
Operating lease liabilities | $ 1,123 | $ 1,364 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities noncurrent | Lease liabilities noncurrent | Lease liabilities noncurrent |
Lease liabilities noncurrent | $ 2,114 | $ 3,670 | |
Total lease liabilities | $ 5,598 | $ 5,617 |
SCHEDULE OF LEASE EXPENSE (Deta
SCHEDULE OF LEASE EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Right-of-use Assets | |||
Interest on lease liabilities (per ASC 842) | $ 66 | $ 77 | $ 88 |
Operating lease expense (per ASC 842) | 828 | 775 | 691 |
Short-term lease expense (other than ASC 842) | 20 | 4 | 6 |
Total lease expense | $ 848 | $ 779 | $ 697 |
SCHEDULE OF FUTURE OF LEASE LIA
SCHEDULE OF FUTURE OF LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Right-of-use Assets | ||
2023 | $ 3,658 | |
2024 | 2,171 | |
Less: interest | (231) | |
Total lease liabilities | 5,598 | $ 5,617 |
Current liabilities | 3,484 | 1,947 |
Non-current liabilities | $ 2,114 | $ 3,670 |
RIGHT-OF-USE ASSETS (Details Na
RIGHT-OF-USE ASSETS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Right-of-use Assets | ||
Borrowing interest rate | 3.35% | |
Operating weighted average remaining life | 3 years | |
Right-of-use assets | $ 1,489 | $ 1,769 |
Lease liabilities | $ 1,600 | $ 1,800 |
SCHEDULE OF COMPONENTS OF PROVI
SCHEDULE OF COMPONENTS OF PROVISION FOR INCOME TAX (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax current year | $ 529 | $ 500 | $ 137 |
Over provision for previous years | (270) | ||
Deferred tax | (134) | ||
Income tax expense | $ 529 | $ 230 | $ 3 |
SCHEDULE OF RECONCILIATION OF I
SCHEDULE OF RECONCILIATION OF INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 1,557 | $ 2,031 | $ 1,322 |
Statutory income tax rate | 17% | 17% | 17% |
Income tax expense at statutory rate | $ 265 | $ 345 | $ 225 |
Tax effect of non-taxable income | (62) | (144) | |
Tax effect of non-deductible items | 339 | 156 | 61 |
Tax refund | (263) | ||
Tax holiday | (13) | (8) | (139) |
Income tax expense | $ 529 | $ 230 | $ 3 |
SCHEDULE OF DEFERRED INCOME TAX
SCHEDULE OF DEFERRED INCOME TAX ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Accelerated tax depreciation | $ 8 | $ 8 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Corporate tax rate | 17% | 17% | 17% |
SINGAPORE | |||
Corporate tax rate | 17% |
SCHEDULE OF NATURE OF TRANSACTI
SCHEDULE OF NATURE OF TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
P4 Engineering Industrial Pte Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
- Sale of goods | [1] | $ 414 | $ 891 | |
- Purchases of goods | [1] | 945 | 640 | 1,906 |
- Land rental | [1] | 404 | 207 | 506 |
Multi Ways Equipment Sdn Bhd [Member] | ||||
Related Party Transaction [Line Items] | ||||
- Sale of goods | [2] | 151 | 1 | |
MWE Investment Pte Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
- Sale of goods | [3] | 11 | ||
Yin Zhan Holdings Pte Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
- Sale of goods | [4] | 5 | 488 | |
- Purchases of goods | [4] | $ 413 | $ 81 | $ 1,632 |
[1]Mr. James Lim, Ms. Lee NG and Ms. Maggie Lim are the directors of P4 Engineering Industrial Pte Ltd. Mr. James Lim and Ms. Lee NG are the shareholders and they hold 100% in P4 Engineering Industrial Pte Ltd.[2]Ms. Maggie Lim and Mr. Nick Tan are the directors. Ms. Maggie Lim, Mr. Nick Tan and Mr. James Lim are the shareholders and hold 100% in Multi Ways Equipment Sdn Bhd.[3]Mr. James Lim, Ms Lee NG and Ms Maggie Lim are the directors, and they are also the shareholders and hold 88% stake in MWE Investment Pte Ltd.[4]Mr. James Lim is the director and shareholder, and he holds 51% stake in Yin Zhan Holding Pte Ltd. |
SCHEDULES OF COMPANY_S PURCHASE
SCHEDULES OF COMPANY’S PURCHASES AND ITS OUTSTANDING PAYABLE BALANCES (Details) - Customer Concentration Risk [Member] - Vendor A [Member] - Accounts Payable [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Percentage of purchases | 15.20% | 19.40% | |
Accounts payable | $ 2,325 |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details Narrative) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 SGD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | ||||
Share based compensation | $ 55,465 | $ 75,000 | ||
Bank and cash balances | 1,000 | |||
Credit risk | $ 1,000 | |||
Revenue Benchmark [Member] | Customer [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 20.60% | 20.60% | 28.80% | 7.70% |
Accounts Payable [Member] | Vendor A [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 15.20% | 15.20% | 19.40% |