Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | SHARING ECONOMY INTERNATIONAL INC. |
Trading Symbol | N/A |
Document Type | 10-Q |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 293,163,890 |
Amendment Flag | false |
Entity Central Index Key | 0000819926 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Quarterly Report | true |
Document Transition Report | false |
Entity File Number | 001-34591 |
Entity Incorporation, State or Country Code | NV |
Entity Tax Identification Number | 90-0648920 |
Entity Address, Address Line One | No.85 Castle Peak Road |
Entity Address, Address Line Two | Castle Peak Bay |
Entity Address, Address Line Three | Tuen Mun |
Entity Address, City or Town | N.T |
Entity Address, Country | HK |
City Area Code | (852) |
Local Phone Number | 35832186 |
Title of 12(b) Security | None |
Security Exchange Name | NONE |
Entity Interactive Data Current | Yes |
Entity Address, Postal Zip Code | 00000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 506,565 | $ 66,273 |
Accounts receivable, net of allowance for doubtful accounts | 216,765 | 141,183 |
Prepaid expenses and other receivables | 179,946 | 307,299 |
Marketable securities | 3,002,974 | 3,624,660 |
Total current assets | 3,906,250 | 4,139,415 |
OTHER ASSETS: | ||
Property and equipment, net | 330,977 | 395,825 |
Intangible assets, net | 16,314 | 31,504 |
Total other assets | 347,291 | 427,329 |
Total assets | 4,253,541 | 4,566,744 |
CURRENT LIABILITIES: | ||
Short-term bank loans | 5,428,151 | 5,584,788 |
Convertible note payable, net of unamortized debt discount | 1,553,847 | 1,113,830 |
Accounts payable and accrued expenses | 794,552 | 785,373 |
Other payable | 1,103,297 | 1,132,872 |
Due to related parties | 3,635,503 | 3,648,565 |
Total current liabilities | 12,515,350 | 12,265,428 |
LONG-TERM LIABILITIES: | ||
Long-term loan | 5,415,449 | 4,822,244 |
Total liabilities | 17,930,799 | 17,087,672 |
STOCKHOLDERS’ DEFICIT: | ||
Preferred stock, Series A $0.001 par value; 50,000,000 shares authorized; 3,189,600 and 3,189,600 issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 3,190 | 3,190 |
Common stock $0.001 par value; 7,450,000,000 shares authorized; 293,163,890 and 239,278,847 shares issued and outstanding at June 30 2022 and December 31, 2021, respectively | 293,163 | 239,278 |
Additional paid-in capital | 66,112,512 | 65,047,662 |
Accumulated deficits | (79,186,282) | (76,908,089) |
Accumulated other comprehensive income | (8,245) | (15,826) |
Total stockholders’ deficit attributed to SEII | (12,785,662) | (11,633,785) |
Non-controlling interest | (891,596) | (887,143) |
Total stockholders’ deficit | (13,677,258) | (12,520,928) |
Total liabilities and stockholders’ deficit | $ 4,253,541 | $ 4,566,744 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, series A par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, series A shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, series A shares issued | 3,189,600 | 3,189,600 |
Preferred stock, series A shares outstanding | 3,189,600 | 3,189,600 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 7,450,000,000 | 7,450,000,000 |
Common stock, shares issued | 293,163,890 | 239,278,847 |
Common stock, shares outstanding | 293,163,890 | 239,278,847 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUES | $ 124,413 | $ 42,078 | $ 181,471 | $ 130,285 |
COST OF REVENUES | ||||
GROSS PROFIT | 124,413 | 42,078 | 181,471 | 130,285 |
OPERATING EXPENSES: | ||||
Depreciation and amortization | 38,622 | 57,538 | 83,417 | 115,844 |
Selling, general and administrative | 1,433,901 | 1,595,624 | 1,891,862 | 1,966,660 |
Total operating expenses | 1,472,523 | 1,653,162 | 1,975,279 | 2,082,504 |
LOSS FROM OPERATIONS | (1,348,110) | (1,611,084) | (1,793,808) | (1,952,219) |
OTHER INCOME (EXPENSE): | ||||
Interest income | 1 | 9 | 2 | 12 |
Interest expense | (47,644) | (151,028) | (138,474) | (229,278) |
Dividend income | 245,034 | 5,500 | 245,034 | 7,222 |
Unrealized loss on marketable securities | (323,028) | (596,980) | ||
Gain (loss) on sale of marketable securities | (26,847) | 439,771 | (26,885) | 616,641 |
Loss on disposal of property, plant and equipment | 25,197 | |||
Foreign currency transaction gain (loss) | (301) | 1,507 | (690) | 8,755 |
Other income | 2,252 | 200 | 3,958 | 2,516 |
Total other (expense) income, net | (150,533) | 295,959 | (488,838) | 405,868 |
LOSE BEFORE PROVISION FOR INCOME TAXES | (1,498,643) | (1,315,125) | (2,282,646) | (1,546,351) |
PROVISIONS FOR INCOME TAXES: | ||||
Current | ||||
Deferred | ||||
Total income tax provision | ||||
NET LOSS | (1,498,643) | (1,315,125) | (2,282,646) | (1,546,351) |
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (2,196) | (2,224) | (4,453) | (4,548) |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | (1,496,447) | (1,312,901) | (2,278,193) | (1,541,803) |
COMPREHENSIVE LOSS: | ||||
Net loss | (1,498,643) | (1,315,125) | (2,282,646) | (1,546,351) |
Foreign currency translation (loss) gain | (1,748) | 15,243 | 7,581 | 38,462 |
Comprehensive loss | (1,500,391) | (1,299,882) | (2,275,065) | (1,507,889) |
Net loss attributable to non-controlling interest | (2,196) | (2,224) | (4,453) | (4,548) |
Foreign currency translation gain (loss) from non-controlling interest | ||||
Comprehensive loss attributable to common stockholders | $ (1,498,195) | $ (1,297,658) | $ (2,270,612) | $ (1,503,341) |
NET LOSS PER COMMON SHARE: | ||||
Continuing operations – basic and diluted (in Dollars per share) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) |
Discontinued operations – basic and diluted (in Dollars per share) | ||||
Net loss per common share - basic (in Dollars per share) | $ (0.01) | $ 0 | $ (0.01) | $ (0.01) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic and diluted (in Shares) | 281,861,298 | 135,665,126 | 260,687,703 | 114,984,418 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Continuing operations – basic and diluted | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) |
Discontinued operations – basic and diluted | ||||
Basic and diluted (in Shares) | 219,060,833 | 135,665,126 | 253,354,090 | 114,984,418 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) (Unaudited) - USD ($) | Preferred stock | Common stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Accumulated deficits | Noncontrolling interests | Total |
Balance at Dec. 31, 2020 | $ 532 | $ 172,883 | $ 61,700,634 | $ (13,246) | $ (73,020,134) | $ (877,585) | $ (12,036,916) |
Balance (in Shares) at Dec. 31, 2020 | 531,600 | 172,883,475 | |||||
Issuance of shares for director’s remuneration | $ 8,333 | 491,667 | 500,000 | ||||
Issuance of shares for director’s remuneration (in Shares) | 8,333,335 | ||||||
Common stock issued upon conversion of debt | $ 12,453 | 91,714 | 104,167 | ||||
Common stock issued upon conversion of debt (in Shares) | 12,452,413 | ||||||
Fractional shares from reverse split | |||||||
Fractional shares from reverse split (in Shares) | 800 | ||||||
Foreign currency translation adjustment | 23,219 | 23,219 | |||||
Net loss for the period | (228,902) | (2,324) | (231,226) | ||||
Balance at Mar. 31, 2021 | $ 532 | $ 193,669 | 62,284,015 | 9,973 | (73,249,036) | (879,909) | (11,640,756) |
Balance (in Shares) at Mar. 31, 2021 | 531,600 | 193,670,023 | |||||
Balance at Dec. 31, 2020 | $ 532 | $ 172,883 | 61,700,634 | (13,246) | (73,020,134) | (877,585) | (12,036,916) |
Balance (in Shares) at Dec. 31, 2020 | 531,600 | 172,883,475 | |||||
Net loss for the period | (1,546,351) | ||||||
Balance at Jun. 30, 2021 | $ 532 | $ 238,424 | 63,989,890 | 25,216 | (74,561,937) | (882,133) | (11,190,008) |
Balance (in Shares) at Jun. 30, 2021 | 531,600 | 238,424,776 | |||||
Balance at Mar. 31, 2021 | $ 532 | $ 193,669 | 62,284,015 | 9,973 | (73,249,036) | (879,909) | (11,640,756) |
Balance (in Shares) at Mar. 31, 2021 | 531,600 | 193,670,023 | |||||
Common stock issued upon conversion of debt | $ 3,948 | 96,052 | 100,000 | ||||
Common stock issued upon conversion of debt (in Shares) | 3,948,278 | ||||||
Common stock issued for services from consultants and service providers | $ 26,873 | 1,024,537 | 1,051,410 | ||||
Common stock issued for services from consultants and service providers (in Shares) | 26,872,638 | ||||||
Common stock issued for business marketing services | $ 13,935 | 585,285 | 599,220 | ||||
Common stock issued for business marketing services (in Shares) | 13,935,337 | ||||||
Cancellation of common stock | $ (1) | 1 | |||||
Cancellation of common stock (in Shares) | (1,500) | ||||||
Foreign currency translation adjustment | 15,243 | 15,243 | |||||
Net loss for the period | (1,312,901) | (2,224) | (1,315,125) | ||||
Balance at Jun. 30, 2021 | $ 532 | $ 238,424 | 63,989,890 | 25,216 | (74,561,937) | (882,133) | (11,190,008) |
Balance (in Shares) at Jun. 30, 2021 | 531,600 | 238,424,776 | |||||
Balance at Dec. 31, 2021 | $ 3,190 | $ 239,278 | 65,047,662 | (15,826) | (76,908,089) | (887,143) | (12,520,928) |
Balance (in Shares) at Dec. 31, 2021 | 3,189,600 | 239,278,847 | |||||
Issuance of shares for redemption of $75,000 promissory note | $ 23,810 | 51,190 | 75,000 | ||||
Issuance of shares for redemption of $75,000 promissory note (in Shares) | 23,809,524 | ||||||
Foreign currency translation adjustment | 9,329 | 9,329 | |||||
Net loss for the period | (781.746) | (2,257) | (784,003) | ||||
Balance at Mar. 31, 2022 | $ 3,190 | $ 263,088 | 65,098,852 | (6,497) | (77,689,835) | (889,400) | (13,220,602) |
Balance (in Shares) at Mar. 31, 2022 | 3,189,600 | 263,088,371 | |||||
Balance at Dec. 31, 2021 | $ 3,190 | $ 239,278 | 65,047,662 | (15,826) | (76,908,089) | (887,143) | (12,520,928) |
Balance (in Shares) at Dec. 31, 2021 | 3,189,600 | 239,278,847 | |||||
Net loss for the period | (2,282,646) | ||||||
Balance at Jun. 30, 2022 | $ 3,190 | $ 293,163 | 66,112,512 | (8,245) | (79,186,282) | (891,596) | (13,677,258) |
Balance (in Shares) at Jun. 30, 2022 | 3,189,600 | 293,163,890 | |||||
Balance at Mar. 31, 2022 | $ 3,190 | $ 263,088 | 65,098,852 | (6,497) | (77,689,835) | (889,400) | (13,220,602) |
Balance (in Shares) at Mar. 31, 2022 | 3,189,600 | 263,088,371 | |||||
Issuance of shares for director’s remuneration | $ 24,730 | 779,005 | 803,735 | ||||
Issuance of shares for director’s remuneration (in Shares) | 24,730,307 | ||||||
Issuance of shares for consultancy service | $ 5,345 | 234,655 | 240,000 | ||||
Issuance of shares for consultancy service (in Shares) | 5,345,212 | ||||||
Foreign currency translation adjustment | (1,748) | (1,748) | |||||
Net loss for the period | (1,496,447) | (2,196) | (1,498,643) | ||||
Balance at Jun. 30, 2022 | $ 3,190 | $ 293,163 | $ 66,112,512 | $ (8,245) | $ (79,186,282) | $ (891,596) | $ (13,677,258) |
Balance (in Shares) at Jun. 30, 2022 | 3,189,600 | 293,163,890 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) (Unaudited) (Parentheticals) | Mar. 31, 2022 USD ($) |
Statement of Stockholders' Equity [Abstract] | |
Issuance of shares | $ 75,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,282,646) | $ (1,546,351) |
Depreciation | 63,528 | 66,769 |
Amortization of intangible assets | 15,124 | 49,075 |
Gain on disposal of property, plant and equipment | (25,197) | |
Unrealized loss on marketable securities | 596,980 | |
Loss/(gain) on disposal of marketable securities | 26,885 | (616,641) |
Dividend received | (245,034) | |
Amortization of debt discount | 2,821 | |
Stock-based professional fees | 1,051,410 | |
Stock-based consultancy fees | 240,000 | 599,220 |
Stock-based director’s remuneration | 803,735 | |
Accounts receivable | (75,582) | (25,607) |
Prepaid and other receivables | 127,353 | (429,979) |
Accounts payable and accrued expenses | 9,179 | (74,113) |
Other payables | (29,575) | 120,750 |
Deferred revenue | (107) | |
CASH FLOWS USED IN OPERATING ACTIVITIES | (775,250) | (802,753) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Dividend received | 245,034 | 7,222 |
Purchase of marketable securities | (171,257) | (17,381,542) |
Proceed from disposal of marketable securities | 144,004 | 16,649,971 |
Proceed from disposal of property, plant and equipment | 30,692 | |
Purchase of property, plant and equipment | (7,949) | |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES | 240,524 | (724,349) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of bank loan | (198,807) | (60,592) |
Proceeds from bank loan | 666,704 | |
Proceeds from issuance of note payable | 230,770 | |
Advance from related party | 501,955 | 149,884 |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES: | 969,852 | 320,062 |
Effect of exchange rate changes | 5,166 | (17,057) |
Net change in cash and cash equivalents | 440,292 | (1,224,097) |
Cash and cash equivalents - beginning of period | 66,273 | 1,805,417 |
Cash and cash equivalents - end of period | 506,565 | 581,320 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
- interest | 86,456 | 110,107 |
- income tax | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
- interest | 52,018 | 119,171 |
- Stock issued for director’s remuneration | 500,000 | |
- Stock issued for services from consultants and vendors | 1,650,630 | |
- Stock issued for redemption of convertible note and accrued interest | $ 75,000 | $ 204,267 |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | NOTE 1 – DESCRIPTION OF BUSINESS AND ORGANIZATION Sharing Economy International Inc. (the “Company”) was incorporated in Delaware on June 24, 1987 under the name of Malex, Inc. On December 18, 2007, the Company’s corporate name was changed to China Wind Systems, Inc. and on June 13, 2011, the Company changed its corporate name to Cleantech Solutions International, Inc. On August 7, 2012, the Company was converted into a Nevada corporation. On January 8, 2018, the Company changed its corporate name to Sharing Economy International Inc. The Company’s latest business initiatives are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models. In connection with the new business initiatives, the Company formed or acquired the following subsidiaries: ● Vantage Ultimate Limited (“Vantage”), a company incorporated under the laws of British Virgin Islands on February 1, 2017 and is wholly-owned by the Company. ● Sharing Economy Investment Limited (“Sharing Economy”), a company incorporated under the laws of British Virgin Islands on May 18, 2017 and is wholly-owned by Vantage. ● EC Advertising Limited (“EC Advertising”), a company incorporated under the laws of Hong Kong on March 17, 2017 and is a wholly-owned by Sharing Economy. ● EC Rental Limited (“EC Rental”), a company incorporated under the laws of British Virgin Islands on May 22, 2017 and is wholly-owned by Vantage. ● EC Assets Management Limited (“EC Assets”), a company incorporated under the laws of British Virgin Islands on May 22, 2017 and is wholly-owned by Vantage. ● Cleantech Solutions Limited (formerly known as EC (Fly Car) Limited), a company incorporated under the laws of British Virgin Islands on May 22, 2017 and is a wholly-owned by Sharing Economy. ● Global Bike Share (Mobile App) Limited, a company incorporated under the laws of British Virgin Islands on May 23, 2017 and is a wholly-owned by Sharing Economy. ● EC Power (Global) Technology Limited (“EC Power”), a company incorporated under the laws of British Virgin Islands on May 26, 2017 and is wholly-owned by EC Rental. ● ECPower (HK) Company Limited, a company incorporated under the laws of Hong Kong on June 23, 2017 and is wholly-owned by EC Power. ● EC Manpower Limited, a company incorporated under the laws of Hong Kong on July 3, 2017 and is wholly-owned by Vantage. ● EC Technology & Innovations Limited (“EC Technology”), a company incorporated under the laws of British Virgin Islands on September 1, 2017 and is wholly-owned by Vantage. ● Inspirit Studio Limited (“Inspirit Studios”), a company incorporated under the laws of Hong Kong on August 24, 2015, and 51% of its shareholding was acquired by EC Technology on December 8, 2017. ● EC Creative Limited (“EC Creative”), a company incorporated under the laws of British Virgin Islands on January 9, 2018 and is wholly-owned by Vantage. ● 3D Discovery Co. Limited (“3D Discovery”), a company incorporated under the laws of Hong Kong on February 24, 2015, 60% of its shareholdings was acquired by EC Technology on January 19, 2018 and remaining 40% of its shareholdings was acquired by EC Technology on August 14, 2020. ● Sharing Film International Limited, a company incorporated under the laws of Hong Kong on January 22, 2018 and is a wholly-owned by EC Creative. ● AnyWorkspace Limited (“AnyWorkspace”), a company incorporated under the laws of Hong Kong on November 12, 2015, and 80% of its shareholding was acquired by Sharing Economy on January 30, 2018. On March 24, 2020, the Company disposed 80% equity interest of AnyWorkspace. ● Xiamen Great Media Company Limited (“Xiamen Great Media”), a company incorporated under the laws of the PRC on September 5, 2018 and is a wholly-owned by EC Advertising. The Company and its subsidiaries are hereinafter referred to as (the “Company”). |
Going Concern Uncertainties
Going Concern Uncertainties | 6 Months Ended |
Jun. 30, 2022 | |
Going Concern Uncertainties [Abstract] | |
GOING CONCERN UNCERTAINTIES | NOTE 2 – GOING CONCERN UNCERTAINTIES These condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying condensed consolidated financial statements, the Company had a net loss of approximately $2,282,646 for the six months ending on June 30, 2022 and suffered from the accumulated deficit of $79,186,282 at that date. The net cash used in operations were approximately $775,250 for the six months ending on June 30, 2022. Management believes that its capital resources are not currently adequate to continue operating and maintaining its business strategy for twelve months from the date of this report. The Company may seek to raise capital through additional debt and/or equity financings to fund its operations in the future. Although the Company has historically raised capital from sales of equity and from bank loans, there is no assurance that it will be able to continue to do so. If the Company is unable to raise additional capital or secure additional lending in the near future, management expects that the Company will need to curtail or cease operations. Management believes that these matters raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Sigificant Accounting Policies
Sigificant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SIGIFICANT ACCOUNTING POLICIES | NOTE 3 – SIGIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The Accounting Standards Codification (“ASC”), maintained by the Financial Accounting Standards Board (the “FASB”), is the current single official source of GAAP. Certain information and note disclosures normally included in audited financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the condensed consolidated balance sheet as of June 30, 2022, which has been derived from audited financial statements for the last completed fiscal year and the unaudited condensed consolidated financial statements for this fiscal quarter, reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended June 30, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2022 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2021. Principles of Consolidation The Company’s condensed consolidated financial statements include the financial statements of its wholly-owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Noncontrolling interest The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the condensed consolidated balance sheets and the consolidated net loss attributable to its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss. Use of estimates The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates in the six months ended June 30, 2022 and 2021 include the allowance for doubtful accounts on accounts and other receivables, the allowance for inventory reserve, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets, valuation of deferred tax assets, and the value of stock-based compensation. Cash and cash equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts to be cash equivalents. The Company maintains with various financial institutions mainly in the PRC, Hong Kong and the U.S. On June 30, 2022 and December 31, 2021, cash balances held in banks in the PRC and Hong Kong of $506,565 and $66,273, respectively, are uninsured. Available-for-sale marketable securities Available-for-sale marketable securities are reported at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Any unrealized losses that are deemed other-than-temporary are included in current period earnings and removed from accumulated other comprehensive income (loss). Realized gains and losses on marketable securities are included in current period earnings. For purposes of computing realized gains and losses, the cost basis of each investment sold is generally based on the weighted average cost method. The Company regularly evaluates whether the decline in fair value of available-for-sale securities is other-than-temporary and objective evidence of impairment could include: ● The severity and duration of the fair value decline; ● Deterioration in the financial condition of the issuer; and ● Evaluation of the factors that could cause individual securities to have an other-than-temporary impairment. Accounts Receivable Accounts receivable are presented as a net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. On June 30, 2022 and December 31, 2021, the Company has established, based on a review of its outstanding balances, no allowance for doubtful accounts in the accounts. Property and Equipment Property and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the statements of operations in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Impairment loss has been recorded in current period. Useful life Office equipment and furniture 5 years Vehicles 5 years Vessels 5 years Depreciation expense from continuing operations for the six months ended June 30, 2022 and 2021 amounted to $63,528 and $66,769, respectively. Depreciation expense from continuing operations for the three months ended June 30, 2022 and 2021 amounted to $31,764 and $33,000, respectively. Impairment of long-lived assets and intangible assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. On June 30, 2022 and December 31, 2021, the Company conducted an impairment assessment on property, equipment and intangible asset based on the guidelines established in ASC Topic 360 to determine the estimated fair market value of property, equipment and intangible asset as of June 30, 2022 and December 31, 2021. Such analysis considered future use of such equipment, consultation with equipment resellers, subsequent sales of price of equipment held for sale, and other industry factors. Upon completion of the 2021 impairment analysis, the Company recorded impairment charges on long-lived assets of $0 and $0 for the year ended June 30, 2022 and 2021. Revenue recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606) (“ASU 2014-09”). Under ASU 2014-09, the Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied. The transaction price for each contract is determined based on the amount the Company expects to be entitled to receive in exchange for transferring the promised products or services to the customer. Collectability of revenue is reasonably assured based on historical evidence of collectability of fees the Company charges its customers. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. At contract inception, the Company determines whether it satisfies the performance obligation over time or at a point in time. The Company derives its revenues from the sale of advertising service in a monthly payment term. The Company’s performance obligation includes providing the connectivity among merchants and consumers, generally through its online media advertising platform. Online marketing consists of search engine marketing, display advertisements, referral programs and affiliate marketing. The Company will provide resources to support the marketing needs of the sharing economy businesses via partnerships and acquisitions of advertising companies. The majority of the Company’s contracts with customers only contain a single performance obligation. When the agreements involve multiple performance obligations, the Company will account for individual performance obligations separately, if they are distinct. The Company has one source of revenue for the respective fiscal periods: June 30, June 30, Sales of advertising service $ 181,471 $ 130,285 Income taxes The Company is governed by the Income Tax Law of the PRC, Inland Revenue Ordinance of Hong Kong and the U.S. Internal Revenue Code of 1986, as amended. The Company accounts for income taxes using the asset/liability method prescribed by ASC 740, “Accounting for Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. On December 22, 2017, the United States signed into law the Tax Cuts and Jobs Act (the “Act”), a tax reform bill which, among other items, reduces the current federal income tax rate in the United States to 21% from 35%. The rate reduction became effective on January 1, 2018 and is permanent. The Act has caused the Company’s deferred income taxes to be revalued. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 (“SAB 118”), as of June 30, 2022, the Company recognized the provisional effects of the enactment of the Act for which measurement could be reasonably estimated. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. The ultimate impact of the Act may differ from these estimates due to the Company’s continued analysis or further regulatory guidance that may be issued as a result of the Act. The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes,” which provides clarification related to the process associated with accounting for uncertain tax positions recognized in the Company’s financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of June 30, 2022 and December 31, 2021, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”) or Hong Kong dollars (“HKD”). For the subsidiaries and affiliates, whose functional currencies are the RMB or HKD, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. The Company did not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. Translation of amounts from RMB and HK$ into US$ has been made at the following exchange rates for the period ended June 30, 2022 and December 31, 2021: June 30, December 31, Period-end RMB:US$ exchange rate 6.6964 6.3588 Period average RMB:US$ exchange rate 6.4763 6.4499 Period-end HK$:US$ exchange rate 7.8464 7.7971 Period average HK$:US$ exchange rate, 7.8000 7.8000 Loss Per Share of Common Stock ASC Topic 260 “Earnings per Share,” requires presentation of both basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company did not have any common stock equivalents or potentially dilutive common stock outstanding during the three and six months ended June 30, 2022 and 2021. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact. Comprehensive loss Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss income for the six months ended June 30, 2022 and 2021 included net loss and unrealized gain from foreign currency translation adjustments. Stock-based compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718, “Stock Compensation” (“ASC 718”) which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the vesting period or immediately if fully vested and non-forfeitable. The FASB also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Related parties The Company follows ASC Topic 850-10, “Related Party Disclosures” for the identification of related parties and disclosure of related party transactions. 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 condensed consolidated 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 ASC Topic 450-20, “Contingencies” to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. 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 consolidated 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. Fair Value of Financial Instruments The Company adopted the guidance of ASC Topic 820, “Fair Value Measurement,” for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, notes receivable, accounts receivable, inventories, advances to suppliers, deferred tax assets, receivable from sale of subsidiary, prepaid expenses and other, short-term bank loans, bank acceptance notes payable, note payable, accounts payable, accrued liabilities, advances from customers, amount due to a related party, VAT and service taxes payable and income taxes payable approximate their fair market value based on the short-term maturity of these instruments. ASC Topic 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. The following table presents information about the Company’s assets and liabilities that were measured at fair value as of June 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. June 30, Quoted Significant Significant Description 2022 (Level 1) (Level 2) (Level 3) (Unaudited) Assets: Marketable securities, available-for-sale $ 3,002,974 $ 3,002,974 $ - $ - December 31, Quoted Significant Significant Description 2021 (Level 1) (Level 2) (Level 3) Assets: Marketable securities, available-for-sale $ 3,624,660 $ 3,624,660 $ - $ - As of June 30, 2022 and December 31, 2021, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis. Concentrations of Credit Risk The Company’s operations are carried out principally in Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in Hong Kong. The Company’s operations in Hong Kong are subject to specific considerations and significant risks not typically associated with companies in North America. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks within the Hong Kong, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4 – PROPERTY AND EQUIPMENT As of June 30, 2022 and December 31, 2021, property and equipment consisted of the following: Useful life June 30, December 31, Office equipment 5 years 25,555 25,717 Motor vehicle 5 years 55,360 120,049 Yacht 5 years 584,150 587,845 665,065 733,611 Less: accumulated depreciation (334,088 ) (337,786 ) $ 330,977 $ 395,825 Depreciation expense for the three months ended June 30, 2022 and 2021 amounted to $31,764 and $30,000. Depreciation expense for the six months ended June 30, 2022 and 2021 amounted to $63,528 and $66,769. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 5 –INTANGIBLE ASSETS As of June 30, 2022 and December 31, 2021, intangible assets consisted of the following: Useful life June 30, December 31, Other intangible assets 3 - 5 years 843,141 843,703 Less: accumulated amortization (826,827 ) (812,199 ) $ 16,314 $ 31,504 Annual amortization of intangible assets attributable to future periods is as follows: Year ending June 30: Amount 2022 16,314 2023 - $ 16,314 For the three months ended June 30, 2022 and 2021, amortization of intangible assets amounted to $4,476 and $24,538, respectively. For the six months ended June 30, 2022 and 2021, amortization of intangible assets amounted to $15,124 and $49,075, respectively. |
Bank Loans
Bank Loans | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
BANK LOANS | NOTE 6 – BANK LOANS Bank loans of $4,845,394 represented the amount due to one financial institution in Hong Kong that is repayable in a term of 30 years, with 360 monthly installments and interest charged at the annual rate of 2.5% lower than its best lending rate. Another loan of $666,702 is due to one financial institution in Hong Kong and is repayable in a term of 10 years, with 120 monthly installments and interest charged at the annual rate of 2.75% of its best lending rate. We have a revolving credit line of $5,331,504 that is expected to be repaid in the next twelve months and interest is charged at the rate of 1.63% per annum over the Hong Kong Dollar Best Lending Rate. As of June 30, 2022, the banking facilities of the Company were secured by: ● Personal guarantee by the directors of the Company’s subsidiary; ● Legal charge and rental assignment over the leasehold land and buildings owned by its related companies which are controlled by the major shareholder of the Company, Mr. Chan Tin Chi; and ● Hong Kong Mortgage Corporation Limited. As of June 30, 2022 and December 31, 2021, bank loans consisted of the following: June 30, December 31, Mortgage loan $ 4,845,394 $ 5,493,475 Line of revolving loan 5,331,504 4,913,557 100% Guarantee bank loan 666,702 - Total bank loans $ 10,843,600 $ 10,407,032 Reclassifying as: Current portion $ 5,428,151 $ 5,584,788 Long-term portion (more than 12 months) 5,415,449 4,822,244 Total bank loans $ 10,843,600 $ 10,407,032 Interest related to the bank loans was $44,403 and $31,857 for the three months ended June 30, 2022 and 2021, respectively. Interest related to the bank loans was $86,394 and $110,107 for the six months ended June 30, 2022 and 2021, respectively. All interests are included in interest expense on the accompanying condensed consolidated statements of operations. |
Convertible Note Payable
Convertible Note Payable | 6 Months Ended |
Jun. 30, 2022 | |
Convertible Notes Payable Abstract | |
CONVERTIBLE NOTE PAYABLE | NOTE 7 – CONVERTIBLE NOTE PAYABLE Securities purchase agreement and related convertible note and warrants Iliad Note On May 2, 2018, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Iliad Research and Trading, L.P. (the “Investor”) pursuant to which the Investor purchased a Convertible Promissory Note (the “Iliad Note”) in the original principal amount of $900,000, convertible into shares of common stock of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in the Iliad Note, and a two year warrant to purchase 134,328 shares of common stock at an exercise price of $7.18 per share (the “Warrant”). In connection with the Iliad Note, the Company paid an original issue discount of $150,000 and paid issuance costs of $45,018 which will be reflected as a debt discount and amortized over the Iliad Note term. The Iliad Note bears interest at 10% per annum, is unsecured, and is due on the date that is fifteen months from May 2, 2018. The Warrant shall expire on the last calendar day of the month in which the second anniversary of the Issue Date occurs. On November 8, 2018, the Company converted an aggregate of $27,811 and $47,189 outstanding principal and interest of the Iliad Note, respectively, into a total of 36,621 shares of its common stock. On January 11, 2019, the Company converted an aggregate of $34,103 and $15,897 outstanding principal and interest of the Iliad Note, respectively, into 266,667 shares of its common stock. On April 30, 2020, the Company converted an aggregate of $100,000 and $0 outstanding principal and interest of the Iliad Note, respectively, into 10,059 shares of its common stock. During the year ended December 31, 2020, the Company converted an aggregate of $235,000 and $158,017 outstanding principal and interest of the Iliad Note, respectively, into 18,944,773 shares of its common stock. The Investor has the right at any time after May 2, 2018 until the outstanding balance has been paid in full to convert all or any part of the outstanding balance into shares of common stock of the Company at conversion price of $6.70 per share (the “Lender Conversion Price”). The Lender Conversion Price is subject to certain adjustments set forth in the Iliad Note. The conversion price for each Redemption Conversion (the “Redemption Conversion Price”) shall be the lesser of (a) the Lender Conversion Price, and (b) the Market Price; provided, however, in no event shall the Redemption Conversion Price be less than $2.00 per share (“Conversion Price Floor”) unless the Company waive the Conversion Price Floor. This debt instrument includes embedded components including a put option. The Company evaluated these embedded components to determine whether they are embedded derivatives within the scope of ASC Topic 815, “Derivatives and Hedging”, that should be separately carried at fair value. ASC 815-15-25-1 provides guidance on when an embedded component should be separated from its host instrument and accounted for separately as a derivative. Based on this analysis, the Company believes that the put option is clearly and closely related to the debt instrument and does not meet the definition of a derivative. Accordingly, in connection with this Iliad Note, the Company recorded a debt discount for (a) the original issue discount of $150,000 (b) the relative fair value of the warrants issued of $152,490 and (c) legal fees and other fees paid in connection with the Iliad Note aggregating $45,018. There is no beneficial conversion feature on the Iliad Note. The debt discount shall be accreted on a straight-line basis over the term of the Iliad Note. The Company is currently in default under Iliad Note with the outstanding balance of $1,259,980 at December 31, 2021. At the date of filing of this quarterly report, both parties have not reached agreement on how to cure the default. Power Up On April 7, 2020, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Power Up Lending Group Ltd. (“Power Up”) pursuant to which Power Up purchased a Convertible Promissory Note (the “Power Up Note”) in the original principal amount of $83,000, with additional tranches of up to $1,000,000 in the aggregate over the next twelve (12) months, subject to the discretion of both parties. The Power Up Note is convertible into shares of common stock of the Company at a price equal to 65% of the average of the two (2) lowest trading prices for the Company’s common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date. The Power Up Note bears interest at 8% per annum and is due on October 7, 2021. During the years ended December 31, 2020 and 2021, respectively, the Company converted an aggregate of $127,820 and $0 outstanding principal and interest of the Power Up Note, respectively, into 8,228,775 shares of its common stock. As of June 30, 2022 and December 31, 2021, the Company has no outstanding balance under the Power Up Note. Black Ice On April 14, 2020, the Company and Black Ice Advisors, LLC (“Black Ice”) entered into a Securities Purchase Agreement, whereby the Company issued a note to Black Ice (the “Black Ice Note”) in the original principal amount of $110,000. The Black Ice Note contains an original issue discount of $10,000 which will be reflected as a debt discount and amortized over the Black Ice Note term. The Black Ice Note is convertible into shares of the common stock of the Company at a price equal to 60% of the lowest trading price of the Company’s common stock for the fifteen (15) prior trading days including the day upon which a Notice of Conversion is received by the Company. The Black Ice Note bears interest at 10% per annum and is due on April 14, 2021. During the year ended December 31, 2020 the Company converted an aggregate of $15,000 outstanding principal and interest of the Black Ice Note, respectively, into 987,180 shares of its common stock. In January 2021, the Company converted an aggregate of $95,000 and $9,167 outstanding principal and interest of the Black Ice Note, respectively, into 12,452,413 shares of its common stock. In June 2021, the Company converted an aggregate of $100,000 outstanding principal of the Black Ice Note, respectively, into 3,948,278 shares of its common stock. As of June 30, 2022 and December 31, 2021, the Company has no outstanding balance under the Black Ice Note. Pyram On April 9, 2021, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Pyram LC Architecture Limited. (“Pyram”) pursuant to which Pyram purchased the Convertible Promissory Note (the “Pyram Note”) in the original principal amount of $89,744. The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on October 8, 2021. On April 28, 2021, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Pyram pursuant to which Pyram purchased the Pyram Note in the original principal amount of $38,462. The Pyram Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on October 28, 2021. On May 13, 2021, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Pyram pursuant to which Pyram purchased the Pyram Note in the original principal amount of $25,641. The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on November 12, 2021. On June 29, 2021, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Pyram pursuant to which Pyram purchased the Pyram Note in the original principal amount of $76,923. The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on December 28, 2021. On July 29, 2021, the Company and Pyram entered into a Note Purchase Agreement, whereby the Company issued a note to Pyram (the “Pyram Note”) in the principal amount of $102,565. The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on January 28, 2022. On August 26, 2021, the Company and Pyram entered into a Note Purchase Agreement, whereby the Company issued a note to Pyram (the “Pyram Note”) in the principal amount of $74,359. The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on February 25, 2022. On September 20, 2021, the Company and Pyram entered into a Note Purchase Agreement, whereby the Company issued a note to Pyram (the “Pyram Note”) in the principal amount of $128,206. The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on March 19, 2022. As of June 30, 2022 and December 31, 2021, convertible debt consisted of the following: June 30, December 31, Principal $ 1,553,847 $ 1,113,830 Unamortized discount - - Convertible debt, net $ 1,553,847 $ 1,113,830 The amortization of discount was $0 and $0 for the three months ended June 30, 2022 and 2021. The amortization of discount was $0 and $2,821 for the six months ended June 30, 2022 and 2021. As of June 30, 2022 and December 31, 2021, accrued interest amounted to $868,607 and $905,046, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 – RELATED PARTY TRANSACTIONS Due to related parties From time to time, during 2021 and 2020, the Company received advances from Chan Tin Chi Family Company Limited (formerly known as YSK 1860 Co., Limited), which is the major shareholder of the Company for working capital purposes. These advances are non-interest bearing and are payable on demand. During the years ended December 31, 2021, the Company repaid to Chan Tin Chi Family Company Limited for working capital totaled $618,151. During the six months ended June 30, 2022, the Company repaid to Chan Tin Chi Family Company Limited working capital totaling $116,214. As of June 30, 2022 and December 31, 2021, amounts due to Chan Tin Chi Family Company Limited amounted to $2,319,506 and $2,435,720, respectively. As of June 30, 2022 and December 31, 2021, amounts due to related companies amounted to $1,315,997 and $1,212,845, respectively. The amounts are unsecured, interest-free and have no fixed terms of repayment. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ DEFICIT | NOTE 9 – STOCKHOLDERS’ DEFICIT Preferred Stock The Company has authorized 50,000,000 shares of preferred stock Series A, with a par value of $0.001 per share. As of June 30, 2022 and December 31, 2021, the Company has 3,189,600 shares and 3,189,600 shares of preferred stock issued and outstanding, respectively. Common Stock The Company has authorized 7,400,000,000 shares of common stock with a par value of $0.001 per share. Common stock issued for debt conversion In March 2022, the Company issued 23,809,524 shares of its common stock upon conversion of debt (note 5). Common stock issued for consultancy fee and director’s remuneration In May 2022, the Company issued 24,730,307 shares of its common stock to director as compensation value of $803,735. In June, 2022, the Company issued 5,345,212 shares of its common stock to four consultants in exchange for consultancy services value of $240,000. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 10 – CONCENTRATIONS Customers For the three and six months ended June 30, 2022 and 2021, there are no customers representing more than 10% of the Company’s revenue. Vendors For the three and six months ended June 30, 2022 and 2021, there are no vendors representing more than 10% of the Company’s purchase. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 – COMMITMENTS AND CONTINGENCIES Litigation: On April 25, 2019, ECPower (HK) Company Limited (“EC Power”), a subsidiary of SEII, filed a claim against The Dairy Farm Limited (“Dairy Farm”) in respect of the cooperation agreement between the two parties for the battery rental business at 7-Eleven outlets in Hong Kong during the period from September 2017 to February 2018. The claim is for a total compensation of HK$1,395,000 (approximately $178,846) which comprises of (i) HK$45,000 (approximately $5,769) as compensation for interest and administration cost incurred as a result of Dairy Farm’s delay in payment of EC Power’s share of the rental income, and (ii) HK$1,350,000 (approximately $173,077) as compensation for Dairy Farm’s early termination of the cooperation agreement without any valid proof of fault on the part of EC Power. Legal proceedings: On June 10, 2020, the Company’s subsidiary, Ecrent Worldwide Company Limited (“Ecrent Worldwide”), a wholly On June 10, 2020, the Company’s subsidiary, Ecrent Worldwide Company Limited (“Ecrent Worldwide”), a wholly owned subsidiary of Universal Sharing Limited (formerly known as Ecrent Holdings Limited), received a writ of summon (the “Summon”) issued by Messrs Wilkinson & Grist on behalf of Mr. Michael Andrew BERMAN and Mr. Eric Hans ISRAEL, who were the former Chief Executive Officer and Chief Financial Officer of Ecrent (America) Company Limited (“Ecrent America”) and Ecrent (USA) Company Limited (“Ecrent USA”). Both Ecrent America and Ecrent USA were the former subsidiaries of Universal Sharing Limited. On the same day, the Summon also delivered to Mr. Chan Tin Chi, the major shareholder of SEII and his spouse, Ms. Deborah Yuen Wai Ming. Pursuant to the US Judgement dated on September 25, 2019 issued by the Supreme Court of the State of New York County of Nassau, the Summon demands Ecrent Worldwide, Mr. Chan Tin Chi, and Ms. Deborah Yuen Wai Ming to fully settle an amount of approximately $241,706 and $103,841 to Mr. Berman and Mr. Israel, respectively representing the unpaid salary, benefits, expenses and incentive bonus. SEII intends to dispute these proceedings that the US Judgement is not enforceable under the Hong Kong jurisdiction. In accordance with applicable accounting guidance, the Company records accruals for certain of its outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. The Company discloses the amount of the accrual if the financial statements would be otherwise misleading. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then the Company discloses an estimate of the possible loss or range of loss, if such estimate can be made or discloses that an estimate cannot be made. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after June 30, 2022, up through August 19, 2022, the date the Company finalized the unaudited condensed consolidated financial statements, and concluded that it has nothing to report. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The Accounting Standards Codification (“ASC”), maintained by the Financial Accounting Standards Board (the “FASB”), is the current single official source of GAAP. Certain information and note disclosures normally included in audited financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the condensed consolidated balance sheet as of June 30, 2022, which has been derived from audited financial statements for the last completed fiscal year and the unaudited condensed consolidated financial statements for this fiscal quarter, reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended June 30, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2022 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2021. |
Principles of Consolidation | Principles of Consolidation The Company’s condensed consolidated financial statements include the financial statements of its wholly-owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Noncontrolling interest | Noncontrolling interest The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the condensed consolidated balance sheets and the consolidated net loss attributable to its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss. |
Use of estimates | Use of estimates The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates in the six months ended June 30, 2022 and 2021 include the allowance for doubtful accounts on accounts and other receivables, the allowance for inventory reserve, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets, valuation of deferred tax assets, and the value of stock-based compensation. |
Cash and cash equivalents | Cash and cash equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts to be cash equivalents. The Company maintains with various financial institutions mainly in the PRC, Hong Kong and the U.S. On June 30, 2022 and December 31, 2021, cash balances held in banks in the PRC and Hong Kong of $506,565 and $66,273, respectively, are uninsured. |
Available-for-sale marketable securities | Available-for-sale marketable securities Available-for-sale marketable securities are reported at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Any unrealized losses that are deemed other-than-temporary are included in current period earnings and removed from accumulated other comprehensive income (loss). Realized gains and losses on marketable securities are included in current period earnings. For purposes of computing realized gains and losses, the cost basis of each investment sold is generally based on the weighted average cost method. The Company regularly evaluates whether the decline in fair value of available-for-sale securities is other-than-temporary and objective evidence of impairment could include: ● The severity and duration of the fair value decline; ● Deterioration in the financial condition of the issuer; and ● Evaluation of the factors that could cause individual securities to have an other-than-temporary impairment. |
Accounts receivable | Accounts Receivable Accounts receivable are presented as a net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. On June 30, 2022 and December 31, 2021, the Company has established, based on a review of its outstanding balances, no allowance for doubtful accounts in the accounts. |
Property and equipment | Property and Equipment Property and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the statements of operations in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Impairment loss has been recorded in current period. Useful life Office equipment and furniture 5 years Vehicles 5 years Vessels 5 years Depreciation expense from continuing operations for the six months ended June 30, 2022 and 2021 amounted to $63,528 and $66,769, respectively. Depreciation expense from continuing operations for the three months ended June 30, 2022 and 2021 amounted to $31,764 and $33,000, respectively. |
Impairment of long-lived assets and intangible assets | Impairment of long-lived assets and intangible assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. On June 30, 2022 and December 31, 2021, the Company conducted an impairment assessment on property, equipment and intangible asset based on the guidelines established in ASC Topic 360 to determine the estimated fair market value of property, equipment and intangible asset as of June 30, 2022 and December 31, 2021. Such analysis considered future use of such equipment, consultation with equipment resellers, subsequent sales of price of equipment held for sale, and other industry factors. Upon completion of the 2021 impairment analysis, the Company recorded impairment charges on long-lived assets of $0 and $0 for the year ended June 30, 2022 and 2021. |
Revenue recognition | Revenue recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606) (“ASU 2014-09”). Under ASU 2014-09, the Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied. The transaction price for each contract is determined based on the amount the Company expects to be entitled to receive in exchange for transferring the promised products or services to the customer. Collectability of revenue is reasonably assured based on historical evidence of collectability of fees the Company charges its customers. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. At contract inception, the Company determines whether it satisfies the performance obligation over time or at a point in time. The Company derives its revenues from the sale of advertising service in a monthly payment term. The Company’s performance obligation includes providing the connectivity among merchants and consumers, generally through its online media advertising platform. Online marketing consists of search engine marketing, display advertisements, referral programs and affiliate marketing. The Company will provide resources to support the marketing needs of the sharing economy businesses via partnerships and acquisitions of advertising companies. The majority of the Company’s contracts with customers only contain a single performance obligation. When the agreements involve multiple performance obligations, the Company will account for individual performance obligations separately, if they are distinct. The Company has one source of revenue for the respective fiscal periods: June 30, June 30, Sales of advertising service $ 181,471 $ 130,285 |
Income taxes | Income taxes The Company is governed by the Income Tax Law of the PRC, Inland Revenue Ordinance of Hong Kong and the U.S. Internal Revenue Code of 1986, as amended. The Company accounts for income taxes using the asset/liability method prescribed by ASC 740, “Accounting for Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. On December 22, 2017, the United States signed into law the Tax Cuts and Jobs Act (the “Act”), a tax reform bill which, among other items, reduces the current federal income tax rate in the United States to 21% from 35%. The rate reduction became effective on January 1, 2018 and is permanent. The Act has caused the Company’s deferred income taxes to be revalued. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 (“SAB 118”), as of June 30, 2022, the Company recognized the provisional effects of the enactment of the Act for which measurement could be reasonably estimated. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. The ultimate impact of the Act may differ from these estimates due to the Company’s continued analysis or further regulatory guidance that may be issued as a result of the Act. The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes,” which provides clarification related to the process associated with accounting for uncertain tax positions recognized in the Company’s financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of June 30, 2022 and December 31, 2021, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. |
Foreign currency translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”) or Hong Kong dollars (“HKD”). For the subsidiaries and affiliates, whose functional currencies are the RMB or HKD, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. The Company did not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. Translation of amounts from RMB and HK$ into US$ has been made at the following exchange rates for the period ended June 30, 2022 and December 31, 2021: June 30, December 31, Period-end RMB:US$ exchange rate 6.6964 6.3588 Period average RMB:US$ exchange rate 6.4763 6.4499 Period-end HK$:US$ exchange rate 7.8464 7.7971 Period average HK$:US$ exchange rate, 7.8000 7.8000 |
Loss per share of common stock | Loss Per Share of Common Stock ASC Topic 260 “Earnings per Share,” requires presentation of both basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company did not have any common stock equivalents or potentially dilutive common stock outstanding during the three and six months ended June 30, 2022 and 2021. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact. |
Comprehensive loss | Comprehensive loss Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss income for the six months ended June 30, 2022 and 2021 included net loss and unrealized gain from foreign currency translation adjustments. |
Stock-based compensation | Stock-based compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718, “Stock Compensation” (“ASC 718”) which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the vesting period or immediately if fully vested and non-forfeitable. The FASB also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. |
Related parties | Related parties The Company follows ASC Topic 850-10, “Related Party Disclosures” for the identification of related parties and disclosure of related party transactions. 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 condensed consolidated 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 ASC Topic 450-20, “Contingencies” to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. 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 consolidated 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. |
Fair value of financial instruments | Fair Value of Financial Instruments The Company adopted the guidance of ASC Topic 820, “Fair Value Measurement,” for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, notes receivable, accounts receivable, inventories, advances to suppliers, deferred tax assets, receivable from sale of subsidiary, prepaid expenses and other, short-term bank loans, bank acceptance notes payable, note payable, accounts payable, accrued liabilities, advances from customers, amount due to a related party, VAT and service taxes payable and income taxes payable approximate their fair market value based on the short-term maturity of these instruments. ASC Topic 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. The following table presents information about the Company’s assets and liabilities that were measured at fair value as of June 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. June 30, Quoted Significant Significant Description 2022 (Level 1) (Level 2) (Level 3) (Unaudited) Assets: Marketable securities, available-for-sale $ 3,002,974 $ 3,002,974 $ - $ - December 31, Quoted Significant Significant Description 2021 (Level 1) (Level 2) (Level 3) Assets: Marketable securities, available-for-sale $ 3,624,660 $ 3,624,660 $ - $ - As of June 30, 2022 and December 31, 2021, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis. |
Concentrations of credit risk | Concentrations of Credit Risk The Company’s operations are carried out principally in Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in Hong Kong. The Company’s operations in Hong Kong are subject to specific considerations and significant risks not typically associated with companies in North America. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks within the Hong Kong, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. |
Recent accounting pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. |
Sigificant Accounting Policies
Sigificant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Significant Accounting Policies (Tables) | |
Schedule of examines the possibility of decreases in the value of fixed assets | Useful life Office equipment and furniture 5 years Vehicles 5 years Vessels 5 years |
Schedule of source of revenue for the respective fiscal periods | June 30, June 30, Sales of advertising service $ 181,471 $ 130,285 |
Schedule of exchange rates | June 30, December 31, Period-end RMB:US$ exchange rate 6.6964 6.3588 Period average RMB:US$ exchange rate 6.4763 6.4499 Period-end HK$:US$ exchange rate 7.8464 7.7971 Period average HK$:US$ exchange rate, 7.8000 7.8000 |
Schedule of fair value hierarchy of the valuation techniques | June 30, Quoted Significant Significant Description 2022 (Level 1) (Level 2) (Level 3) (Unaudited) Assets: Marketable securities, available-for-sale $ 3,002,974 $ 3,002,974 $ - $ - December 31, Quoted Significant Significant Description 2021 (Level 1) (Level 2) (Level 3) Assets: Marketable securities, available-for-sale $ 3,624,660 $ 3,624,660 $ - $ - |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Useful life June 30, December 31, Office equipment 5 years 25,555 25,717 Motor vehicle 5 years 55,360 120,049 Yacht 5 years 584,150 587,845 665,065 733,611 Less: accumulated depreciation (334,088 ) (337,786 ) $ 330,977 $ 395,825 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Useful life June 30, December 31, Other intangible assets 3 - 5 years 843,141 843,703 Less: accumulated amortization (826,827 ) (812,199 ) $ 16,314 $ 31,504 |
Schedule of amortization of intangible assets attributable to future periods | Year ending June 30: Amount 2022 16,314 2023 - $ 16,314 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of bank loans | June 30, December 31, Mortgage loan $ 4,845,394 $ 5,493,475 Line of revolving loan 5,331,504 4,913,557 100% Guarantee bank loan 666,702 - Total bank loans $ 10,843,600 $ 10,407,032 Reclassifying as: Current portion $ 5,428,151 $ 5,584,788 Long-term portion (more than 12 months) 5,415,449 4,822,244 Total bank loans $ 10,843,600 $ 10,407,032 |
Convertible Note Payable (Table
Convertible Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Convertible Notes Payable Abstract | |
Schedule of convertible debt | June 30, December 31, Principal $ 1,553,847 $ 1,113,830 Unamortized discount - - Convertible debt, net $ 1,553,847 $ 1,113,830 |
Description of Business and O_2
Description of Business and Organization (Details) | 1 Months Ended | ||||
Mar. 24, 2020 | Jan. 19, 2018 | Nov. 12, 2015 | Aug. 24, 2015 | Feb. 24, 2015 | |
EC Technology [Member] | |||||
Description of Business and Organization (Details) [Line Items] | |||||
Equity interest percentage | 40% | ||||
AnyWorkspace Limited [Member] | |||||
Description of Business and Organization (Details) [Line Items] | |||||
Equity interest percentage | 80% | ||||
Inspirit Studio Limited [Member] | |||||
Description of Business and Organization (Details) [Line Items] | |||||
Equity acquired percentage | 51% | ||||
3D Discovery Co. Limited [Member] | |||||
Description of Business and Organization (Details) [Line Items] | |||||
Equity acquired percentage | 60% | ||||
AnyWorkspace Limited [Member] | |||||
Description of Business and Organization (Details) [Line Items] | |||||
Equity acquired percentage | 80% |
Going Concern Uncertainties (De
Going Concern Uncertainties (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Going Concern Uncertainties [Abstract] | |||||||
Net loss | $ (1,498,643) | $ (784,003) | $ (1,315,125) | $ (231,226) | $ (2,282,646) | $ (1,546,351) | |
Accumulated deficit | $ (79,186,282) | (79,186,282) | $ (76,908,089) | ||||
Net cash | $ 775,250 |
Sigificant Accounting Policie_2
Sigificant Accounting Policies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 22, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Sigificant Accounting Policies (Details) [Line Items] | ||||||||
Cash balances held in banks | $ 506,565 | $ 506,565 | $ 506,565 | $ 66,273 | ||||
Depreciation expenses | $ 31,764 | $ 33,000 | $ 63,528 | $ 66,769 | ||||
Impairment charges on long-lived assets | $ 0 | $ 0 | ||||||
Minimum [Member] | ||||||||
Sigificant Accounting Policies (Details) [Line Items] | ||||||||
Current federal income tax rate | 21% | |||||||
Maximum [Member] | ||||||||
Sigificant Accounting Policies (Details) [Line Items] | ||||||||
Current federal income tax rate | 35% |
Sigificant Accounting Policie_3
Sigificant Accounting Policies (Details) - Schedule of examines the possibility of decreases in the value of fixed assets | 6 Months Ended |
Jun. 30, 2022 | |
Office equipment and furniture [Member] | |
Sigificant Accounting Policies (Details) - Schedule of examines the possibility of decreases in the value of fixed assets [Line Items] | |
Property and equipment useful life | 5 years |
Vehicles [Member] | |
Sigificant Accounting Policies (Details) - Schedule of examines the possibility of decreases in the value of fixed assets [Line Items] | |
Property and equipment useful life | 5 years |
Vessels [Member] | |
Sigificant Accounting Policies (Details) - Schedule of examines the possibility of decreases in the value of fixed assets [Line Items] | |
Property and equipment useful life | 5 years |
Sigificant Accounting Policie_4
Sigificant Accounting Policies (Details) - Schedule of source of revenue for the respective fiscal periods - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Source Of Revenue For The Respective Fiscal Periods Abstract | ||
Sales of advertising service | $ 181,471 | $ 130,285 |
Sigificant Accounting Policie_5
Sigificant Accounting Policies (Details) - Schedule of exchange rates - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Period-end RMB:US$ exchange rate [Member] | ||
Sigificant Accounting Policies (Details) - Schedule of exchange rates [Line Items] | ||
Foreign Currency Translation Exchange Rates | $ 6.6964 | $ 6.3588 |
Period average RMB:US$ exchange rate [Member] | ||
Sigificant Accounting Policies (Details) - Schedule of exchange rates [Line Items] | ||
Foreign Currency Translation Exchange Rates | 6.4763 | 6.4499 |
Period-end HK$:US$ exchange rate [Member] | ||
Sigificant Accounting Policies (Details) - Schedule of exchange rates [Line Items] | ||
Foreign Currency Translation Exchange Rates | 7.8464 | 7.7971 |
Period average HK$:US$ exchange rate, [Member] | ||
Sigificant Accounting Policies (Details) - Schedule of exchange rates [Line Items] | ||
Foreign Currency Translation Exchange Rates | $ 7.8 | $ 7.8 |
Sigificant Accounting Policie_6
Sigificant Accounting Policies (Details) - Schedule of fair value hierarchy of the valuation techniques - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Marketable securities, available-for-sale | $ 3,002,974 | $ 3,624,660 |
Quoted Prices In Active Markets (Level 1) [Member] | ||
Assets: | ||
Marketable securities, available-for-sale | 3,002,974 | $ 3,624,660 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Marketable securities, available-for-sale | ||
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Marketable securities, available-for-sale |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 31,764 | $ 30,000 | $ 63,528 | $ 66,769 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 665,065 | $ 733,611 |
Less: accumulated depreciation | (334,088) | (337,786) |
Property and equipment, net | $ 330,977 | 395,825 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Property and equipment, gross | $ 25,555 | 25,717 |
Motor Vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Property and equipment, gross | $ 55,360 | 120,049 |
Yacht [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Property and equipment, gross | $ 584,150 | $ 587,845 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 4,476 | $ 24,538 | $ 15,124 | $ 49,075 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of intangible assets - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (826,827) | $ (812,199) |
Intangible assets, net | 16,314 | 31,504 |
Apps and Virtual technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | $ 843,141 | $ 843,703 |
Apps and Virtual technology [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 3 years | |
Apps and Virtual technology [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 5 years |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of amortization of intangible assets attributable to future periods | Jun. 30, 2022 USD ($) |
Schedule Of Amortization Of Intangible Assets Attributable To Future Periods Abstract | |
2022 | $ 16,314 |
2023 | |
Total | $ 16,314 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Bank Loans (Details) [Line Items] | ||||
Bank loans, description | Bank loans of $4,845,394 represented the amount due to one financial institution in Hong Kong that is repayable in a term of 30 years, with 360 monthly installments and interest charged at the annual rate of 2.5% lower than its best lending rate. Another loan of $666,702 is due to one financial institution in Hong Kong and is repayable in a term of 10 years, with 120 monthly installments and interest charged at the annual rate of 2.75% of its best lending rate. We have a revolving credit line of $5,331,504 that is expected to be repaid in the next twelve months and interest is charged at the rate of 1.63% per annum over the Hong Kong Dollar Best Lending Rate. | |||
Bank Loans [Member] | ||||
Bank Loans (Details) [Line Items] | ||||
Interest related to bank loans | $ 44,403 | $ 31,857 | $ 86,394 | $ 110,107 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of bank loans - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Bank Loans Abstract | ||
Mortgage loan | $ 4,845,394 | $ 5,493,475 |
Line of revolving loan | 5,331,504 | 4,913,557 |
100% Guarantee bank loan | 666,702 | |
Total bank loans | 10,843,600 | 10,407,032 |
Current portion | 5,428,151 | 5,584,788 |
Long-term portion (more than 12 months) | 5,415,449 | 4,822,244 |
Total bank loans | $ 10,843,600 | $ 10,407,032 |
Convertible Note Payable (Detai
Convertible Note Payable (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
May 13, 2021 | Apr. 09, 2021 | Apr. 14, 2020 | Apr. 07, 2020 | Jan. 11, 2019 | Nov. 08, 2018 | Sep. 20, 2021 | Aug. 26, 2021 | Jul. 29, 2021 | Jun. 30, 2021 | Jun. 29, 2021 | Apr. 28, 2021 | Jan. 31, 2021 | Apr. 30, 2020 | May 02, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Convertible Note Payable (Details) [Line Items] | |||||||||||||||||||||
Principal amount | $ 100,000 | $ 235,000 | |||||||||||||||||||
Original issue discount | $ 150,000 | ||||||||||||||||||||
Debt discount | 45,018 | ||||||||||||||||||||
Debt accrued interest | $ 0 | $ 158,017 | |||||||||||||||||||
Aggregate of outstanding principal amount (in Shares) | 10,059 | 18,944,773 | |||||||||||||||||||
Fair value of the warrants issued | 152,490 | ||||||||||||||||||||
Debt outstanding balance | $ 1,259,980 | ||||||||||||||||||||
Note purchase agreement, description | the Company closed a private placement of securities with Power Up Lending Group Ltd. (“Power Up”) pursuant to which Power Up purchased a Convertible Promissory Note (the “Power Up Note”) in the original principal amount of $83,000, with additional tranches of up to $1,000,000 in the aggregate over the next twelve (12) months, subject to the discretion of both parties. The Power Up Note is convertible into shares of common stock of the Company at a price equal to 65% of the average of the two (2) lowest trading prices for the Company’s common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date. The Power Up Note bears interest at 8% per annum and is due on October 7, 2021. | the Company issued a note to Pyram (the “Pyram Note”) in the principal amount of $128,206. The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on March 19, 2022 | The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on February 25, 2022.On September 20, 2021, the Company and Pyram entered into a Note Purchase Agreement, whereby the Company issued a note to Pyram (the “Pyram Note”) in the principal amount of $128,206. The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. | the Company issued a note to Pyram (the “Pyram Note”) in the principal amount of $102,565. The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on January 28, 2022.On August 26, 2021, the Company and Pyram entered into a Note Purchase Agreement, whereby the Company issued a note to Pyram (the “Pyram Note”) in the principal amount of $74,359. The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on February 25, 2022. On September 20, 2021, the Company and Pyram entered into a Note Purchase Agreement, whereby the Company issued a note to Pyram (the “Pyram Note”) in the principal amount of $128,206. The Pyram Note is a convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. | |||||||||||||||||
Amortization of discount | $ 0 | $ 0 | 0 | $ 2,821 | |||||||||||||||||
Accrued interest | $ 868,607 | $ 868,607 | $ 905,046 | ||||||||||||||||||
Iliad Note [Member] | |||||||||||||||||||||
Convertible Note Payable (Details) [Line Items] | |||||||||||||||||||||
Principal amount | $ 34,103 | $ 27,811 | |||||||||||||||||||
Debt accrued interest | $ 15,897 | $ 47,189 | |||||||||||||||||||
Aggregate of outstanding principal amount (in Shares) | 266,667 | 36,621 | |||||||||||||||||||
Investor [Member] | Iliad Note [Member] | |||||||||||||||||||||
Convertible Note Payable (Details) [Line Items] | |||||||||||||||||||||
Principal amount | $ 900,000 | ||||||||||||||||||||
Warrants exercise price (in Dollars per share) | $ 7.18 | ||||||||||||||||||||
Debt instrument convertible conversion price (in Dollars per share) | $ 6.7 | ||||||||||||||||||||
Power Up Lending Group Ltd. [Member] | |||||||||||||||||||||
Convertible Note Payable (Details) [Line Items] | |||||||||||||||||||||
Principal amount | $ 127,820 | ||||||||||||||||||||
Debt accrued interest | $ 0 | ||||||||||||||||||||
Aggregate of outstanding principal amount (in Shares) | 8,228,775 | ||||||||||||||||||||
Black Ice Advisors, LLC [Member] | |||||||||||||||||||||
Convertible Note Payable (Details) [Line Items] | |||||||||||||||||||||
Principal amount | $ 100,000 | $ 95,000 | $ 100,000 | $ 100,000 | $ 15,000 | ||||||||||||||||
Debt accrued interest | $ 9,167 | ||||||||||||||||||||
Aggregate of outstanding principal amount (in Shares) | 3,948,278 | 12,452,413 | 987,180 | ||||||||||||||||||
Note purchase agreement, description | the Company issued a note to Black Ice (the “Black Ice Note”) in the original principal amount of $110,000. The Black Ice Note contains an original issue discount of $10,000 which will be reflected as a debt discount and amortized over the Black Ice Note term. The Black Ice Note is convertible into shares of the common stock of the Company at a price equal to 60% of the lowest trading price of the Company’s common stock for the fifteen (15) prior trading days including the day upon which a Notice of Conversion is received by the Company. The Black Ice Note bears interest at 10% per annum and is due on April 14, 2021. | ||||||||||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||||||||||
Convertible Note Payable (Details) [Line Items] | |||||||||||||||||||||
Note purchase agreement, description | The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on November 12, 2021.On June 29, 2021, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Pyram pursuant to which Pyram purchased the Pyram Note in the original principal amount of $76,923. The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. | the Company closed a private placement of securities with Pyram LC Architecture Limited. (“Pyram”) pursuant to which Pyram purchased the Convertible Promissory Note (the “Pyram Note”) in the original principal amount of $89,744. The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on October 8, 2021.On April 28, 2021, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Pyram pursuant to which Pyram purchased the Pyram Note in the original principal amount of $38,462. The Pyram Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on October 28, 2021. On May 13, 2021, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Pyram pursuant to which Pyram purchased the Pyram Note in the original principal amount of $25,641. The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on November 12, 2021. On June 29, 2021, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Pyram pursuant to which Pyram purchased the Pyram Note in the original principal amount of $76,923. The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. | The Power Up Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on December 28, 2021 | The Pyram Note is convertible into shares of the common stock of the Company at a price equal to 70% of the average closing prices for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Pyram Note bears interest at 12% per annum and is due on October 28, 2021 | |||||||||||||||||
Convertible Debt [Member] | Iliad Note [Member] | |||||||||||||||||||||
Convertible Note Payable (Details) [Line Items] | |||||||||||||||||||||
Term of warrants | 2 years | ||||||||||||||||||||
Warrants to purchase common stock (in Shares) | 134,328 | ||||||||||||||||||||
Original issue discount | $ 150,000 | ||||||||||||||||||||
Debt discount | $ 45,018 | ||||||||||||||||||||
Due date description | The Iliad Note bears interest at 10% per annum, is unsecured, and is due on the date that is fifteen months from May 2, 2018. | ||||||||||||||||||||
Redemption conversion price, description | The conversion price for each Redemption Conversion (the “Redemption Conversion Price”) shall be the lesser of (a) the Lender Conversion Price, and (b) the Market Price; provided, however, in no event shall the Redemption Conversion Price be less than $2.00 per share (“Conversion Price Floor”) unless the Company waive the Conversion Price Floor. |
Convertible Note Payable (Det_2
Convertible Note Payable (Details) - Schedule of convertible debt - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Convertible Debt Abstract | ||
Principal | $ 1,553,847 | $ 1,113,830 |
Unamortized discount | ||
Convertible debt, net | $ 1,553,847 | $ 1,113,830 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transactions (Details) [Line Items] | ||
Amounts due to related party | $ 1,315,997 | $ 1,212,845 |
YSK 1860 Co., Limited [Member] | ||
Related Party Transactions (Details) [Line Items] | ||
Provisional agreement for purchase and sale description | From time to time, during 2021 and 2020, the Company received advances from Chan Tin Chi Family Company Limited (formerly known as YSK 1860 Co., Limited), which is the major shareholder of the Company for working capital purposes. These advances are non-interest bearing and are payable on demand. During the years ended December 31, 2021, the Company repaid to Chan Tin Chi Family Company Limited for working capital totaled $618,151. During the six months ended June 30, 2022, the Company repaid to Chan Tin Chi Family Company Limited working capital totaling $116,214. As of June 30, 2022 and December 31, 2021, amounts due to Chan Tin Chi Family Company Limited amounted to $2,319,506 and $2,435,720, respectively. |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
May 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Deficit (Details) [Line Items] | ||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||
Preferred stock, shares issued | 3,189,600 | 3,189,600 | ||
Preferred stock, shares outstanding | 3,189,600 | 3,189,600 | ||
Common stock, shares authorized | 7,450,000,000 | 7,450,000,000 | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||
Compensation value (in Dollars) | $ 803,735 | |||
Consultancy services value (in Dollars) | $ 240,000 | |||
Common Stock [Member] | ||||
Stockholders' Deficit (Details) [Line Items] | ||||
Common stock, shares authorized | 7,400,000,000 | 7,400,000,000 | ||
Issued shares of common stock | 24,730,307 | 5,345,212 | 23,809,524 |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Customers [Member] | Revenue [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentration risk percentage | 10% | 10% | 10% | 10% |
Vendors [Member] | Purchase [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentration risk percentage | 10% | 10% | 10% | 10% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Apr. 25, 2019 | Dec. 31, 2020 | |
Commitments and Contingencies (Details) [Line Items] | ||
Commitments and contingencies, description | The claim is for a total compensation of HK$1,395,000 (approximately $178,846) which comprises of (i) HK$45,000 (approximately $5,769) as compensation for interest and administration cost incurred as a result of Dairy Farm’s delay in payment of EC Power’s share of the rental income, and (ii) HK$1,350,000 (approximately $173,077) as compensation for Dairy Farm’s early termination of the cooperation agreement without any valid proof of fault on the part of EC Power. | |
Mr. Chan Tin Chi [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Legal settlement amount | $ 241,706 | |
Ms. Deborah Yuen Wai Ming [member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Legal settlement amount | $ 103,841 |