Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Jun. 28, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | WAVE SYNC CORP. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 19,322,242 | |
Amendment Flag | false | |
Entity Central Index Key | 0000860131 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-34113 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-2559866 | |
Entity Address, Address Line One | 19 West 44th Street | |
Entity Address, Address Line Two | Suite 1001 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | +852 | |
Local Phone Number | 9804 7102 | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 555,717 | $ 2,877,456 |
Accounts receivable, net of allowance | 77,158 | 64,089 |
Inventory | 1,996 | 2,673 |
Other receivable | 11,851 | |
Prepaid expenses | 235 | 5,706 |
Deposit paid | 299,565 | 99,553 |
Total Current Assets | 946,522 | 3,049,477 |
Non-current assets | ||
Property and equipment, net | 22,974,255 | 21,140,192 |
Intangible assets, net | 240,099 | 189,692 |
Long-term investment | 859,108 | 857,011 |
Goodwill | 91,556 | 63,417 |
Total Assets | 25,111,540 | 25,299,789 |
Current liabilities | ||
Accounts payable | 204,280 | 340,826 |
Accrued expenses | 120,335 | 100,278 |
Security deposits from customers | 14,393 | 14,393 |
Short-term loans | 160,531 | 166,777 |
Note payables | 2,060,274 | 2,010,959 |
Other payables | 14,055 | |
Taxes payable | 1,240 | 1,200 |
Due to related parties | 37,684 | 38,546 |
Total Current Liabilities | 2,612,792 | 2,672,979 |
Long term loans | 1,424,496 | 1,433,859 |
Deferred tax liabilities | ||
Total Liabilities | 4,037,288 | 4,106,838 |
Commitment and contingencies | ||
Shareholders’ equity | ||
Common Stock ($0.001 par value, 100,000,000 shares authorized, 17,465,992 and 17,465,992 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively) | 17,466 | 17,466 |
Additional paid in capital | 25,459,964 | 23,465,830 |
Accumulated deficits | (4,403,178) | (2,290,345) |
Accumulated other comprehensive loss | ||
Total Shareholders’ Equity | 21,074,252 | 21,192,951 |
Total Liabilities and Shareholders’ Equity | $ 25,111,540 | $ 25,299,789 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 17,465,992 | 17,465,992 |
Common stock, shares outstanding | 17,465,992 | 17,465,992 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Income Statement [Abstract] | |||
Revenue | $ 789,348 | ||
Cost of revenue | 228,637 | ||
Gross profit | 560,711 | ||
Operating expenses | |||
General and administrative expenses | 658,031 | 10,723 | |
Financial expenses | 49,497 | 280 | |
Total Operating expenses | 707,528 | 11,003 | |
Loss from operations | (146,817) | (11,003) | |
Other income (expenses) | |||
Interest income | 2,644 | ||
Interest expense | (18,096) | ||
Other income | 22 | ||
Total other (expenses) income, net | (15,430) | ||
Loss before income tax expenses | (162,247) | (11,003) | |
Income tax expenses | |||
Net loss | (162,247) | (11,003) | |
Other comprehensive loss | |||
Foreign currency translation (loss) gain | |||
Comprehensive loss | $ (162,247) | $ (11,003) | |
Weighted average number of shares, basic and diluted (in Shares) | 17,465,992 | 4,205,543 | [1] |
Basic and diluted loss per share (in Dollars per share) | $ (0.00929) | $ (0.00262) | |
[1]- The number of shares outstanding was adjusted retroactively for all periods presented to reflect the 5 to 1 reverse stock split change which became effective on November 1, 2021. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (162,247) | $ (11,003) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 117,361 | |
Interest income on convertible loan note | (2,097) | |
Changes in operating assets and liabilities: | ||
Accounts receivables | (13,069) | |
Inventory | 677 | |
Prepaid expenses | 5,471 | |
Other receivable | (11,851) | |
Deposit paid | (200,012) | |
Accounts payable | (136,547) | |
Accrued expenses | 68,511 | (6,828) |
Other payables | 12,579 | |
Tax payable | 400 | |
Net cash (used in)/provided by operating activities | (321,224) | (17,431) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,918,350) | |
Investment on intangible assets | (66,556) | |
Proceeds from disposal of property and equipment | ||
Net cash (used in)/provided by investing activities | (1,984,906) | |
Cash flows from financing activities: | ||
Proceeds from related party | 20,431 | |
Repayment of bank loan | (15,609) | |
Proceeds from issuance of shares | ||
Repayment of bank loan | ||
Net cash provided by/ (used in) financing activities | (15,609) | 20,431 |
Effect of exchange rate changes on cash | ||
Net increase (decrease) in cash | (2,321,739) | 3,000 |
Cash at beginning of year | 2,877,456 | 3 |
Cash at end of year | 555,717 | 3,003 |
Supplemental disclosure of cash flow information | ||
Interest received | ||
Interest paid | ||
Income taxes paid | ||
Non- cash financing activities | ||
Forgiveness of loans from related parties | ||
Undertaking of assets and liabilities by related parties |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders’ Equity/(Deficiency) - USD ($) | Common Stock | Additional paid-in Capital | Accumulated deficit | Accumulated other comprehensive income | Total | |
Balance at Dec. 31, 2020 | $ 4,206 | $ 27,314,316 | $ (27,131,839) | $ (258,524) | $ (71,841) | |
Balance (in Shares) at Dec. 31, 2020 | [1] | 4,205,543 | ||||
Net (loss) | (11,003) | (11,003) | ||||
Foreign currency translation loss | ||||||
Balance at Mar. 31, 2021 | $ 4,206 | 27,314,316 | (27,142,842) | (258,524) | (82,844) | |
Balance (in Shares) at Mar. 31, 2021 | [1] | 4,205,543 | ||||
Balance at Dec. 31, 2021 | $ 17,466 | 23,465,830 | (2,290,345) | 21,192,951 | ||
Balance (in Shares) at Dec. 31, 2021 | 17,465,992 | |||||
Net (loss) | (162,247) | (162,247) | ||||
Acquisition of subsidiaries | 1,994,134 | (1,950,586) | 43,548 | |||
Foreign currency translation loss | ||||||
Balance at Mar. 31, 2022 | $ 17,466 | $ 25,459,964 | $ (4,403,178) | $ 21,074,252 | ||
Balance (in Shares) at Mar. 31, 2022 | 17,465,992 | |||||
[1]- The number of shares outstanding was adjusted retroactively for all periods presented to reflect the 5 to 1 reverse stock split change which became effective on November 1, 2021. |
Organization and Principal Acti
Organization and Principal Activities | 3 Months Ended |
Mar. 31, 2022 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Wave Sync Corp. formerly known as China Bio-Energy Corp. (the “Company”), and prior to that known as China INSOnline Corp., was incorporated on December 23, 1988 as Lifequest Medical, Inc., a Delaware corporation. In June 2010, the Company ceased all operations conducted by its then subsidiaries: Ever Trend Investment Limited, Run Ze Yong Cheng (Beijing) Technology, San Teng Da Fei Technology, and Guang Hua Insurance Agency (collectively the “Ever Trend Group”). On January 27, 2015, the Company announced the completion of the disposition of the aforementioned subsidiaries. Accordingly, the Company has excluded the accounts of the Ever Trend Group in these financial statements and the accompanying notes contained herein. On November 12, 2010, the Company entered into a share exchange agreement with Ding Neng Holdings Ltd, an investment holdings company incorporated in the British Virgin Islands (“Ding Neng Holdings”); the share exchange agreement was amended on December 6, 2010, whereby the Company, under the share exchange agreement and its related amendment, would have contemplated acquiring 100% of Ding Neng Holdings in exchange for the issuance of 26,162,505 shares of the Company’s common stock, par value $0.001. Under the share exchange agreement, the Company would have contemplated owning and operating Ding Neng Holdings and Ding Neng Holdings’ directly, and indirectly held subsidiaries: Ding Neng Bio-technology Co., Ltd. (“Ding Neng HK”), Zhangzhou Fuhua Biomass Energy Technology Co., Ltd. (“WOFE”), and Ding Neng Bio-tech. Ding Neng HK was incorporated under the laws of Hong Kong on September 10, 2010. Ding Neng HK did not have any operations. Ding Neng HK has been delinquent with its annual regulatory filings in Hong Kong, and should be considered dormant and defunct. Ding Neng HK was wholly-owned by Ding Neng Holdings. The WFOE was incorporated as a wholly-foreign owned entity under the laws of the People’s Republic of China (“PRC”), on November 2, 2010. WFOE was wholly-owned by Ding Neng HK. Ding Neng Bio-tech was incorporated under the laws of the PRC on December 8, 2006. It was located in Zhangzhou city Fujian Province of PRC. Ding Neng Bio-tech was engaged in the production, refinement and distribution of bio-diesel fuel in Southern China. Ding Neng Bio-tech operated a biodiesel manufacturing facility in Zhangzhou city. On October 28, 2010, WFOE and Ding Neng Bio-tech entered into a set of variable interest entity agreements that included: (1) a Consulting Service Agreement with Ding Neng Bio-tech, which entitled WFOE to receive substantially all of the economic benefits of Ding Neng Bio-tech in consideration for services provided by WFOE to DingNeng Bio-tech, (2) an Option Agreement with Xinfeng Nie, Sanfu Huang, and Shunlong Hu (the shareholders of Ding Neng Bio-tech) allowing the WFOE to acquire all the shares of Ding Neng Bio-tech as permitted by PRC laws, (3) a Voting Rights Proxy Agreement that provides WFOE with the all voting rights of the Ding Neng Bio-tech shareholders, and (4) an Equity Pledge Agreement that pledges the shares in Ding Neng Bio-tech to WFOE (VIE Agreements). These VIE Agreements granted effective control of Ding Neng Bio-tech to WFOE. On June 4, 2015, WFOE filed a civil action in Haicang District People’s Court of Xiamen, Fujian, PRC (the “Court”) against Ding Neng Bio-tech, alleging that the purposes of those certain executed VIE Agreements entered into by WFOE and Ding Neng Bio-Tech on October 28, 2010, had been frustrated, and that these VIE Agreements should be terminated. WFOE alleged that Ding Neng Bio-Tech did not make any payment of service fees to WFOE, and that Ding Neng Bio-Tech failed to perfect the security interest in the pledged stocks. On July 14, 2015, this case was settled via in-court mediation directed by the Court. As a result, WFOE and Ding Neng Bio-Tech entered into a binding settlement, among other things, (i) to terminate the VIE Agreements, and (ii) that the litigation fee in the amount of RMB10,000 (approximately$1,610.50) would be borne by Ding Neng Bio-Tech. Ding Neng Holdings is delinquent with its regulatory filings and annual fees to the British Virgin Islands; accordingly, the Ding Neng Holdings should be considered dormant and defunct. Given that the Company has not been able to exercise effective control over Ding Neng Bio-Tech or to access Ding Neng Bio-tech’s financial information since 2011, and the VIE Agreements were terminated, the Company has excluded the accounts of Ding Neng Bio-Tech in these financial statements and the accompanying notes contained herein; the exclusion of such accounts is considered as a type two material subsequent event that occurred prior to the issuance of the financial statements but after the balance sheets dates that required material adjustments to the financial statements presented. Ding Neng Holdings is delinquent and defunct; the Company has determined that the Company was never registered as the sole shareholder of Ding Neng Holdings pursuant to the share exchange agreement dated November 12, 2010, and as amended on December 6, 2010; accordingly, the Company has excluded the accounts of Ding Neng and its subsidiaries in these financial statements and the accompanying notes as contained herein; the exclusion of such accounts is considered as a type two material subsequent event that occurred prior to the issuance of the financial statements but after the balance sheets dates that required material adjustments to the financial statements presented. The Company accounted for the issuance of shares to the shareholders of Ding Neng Holdings under the contemplated share exchange transaction as a recapitalization of the Company under reverse take-over accounting; accordingly, the Company’s historical stockholders’ equity has been retroactively restated to the first period presented; as a result of the Company not being updated to Ding Neng Holdings shareholder register, and that Ding Neng Holdings being defunct, the Company has written off all investments made in Ding Neng as loss on investment in subsidiary. In connection with the share exchange agreement with the shareholders of Ding Neng Holdings that contemplated the acquisition of Ding Neng Holdings and its subsidiaries, the Company elected to adopt the fiscal year used by Ding Neng Holdings, which was a calendar year; accordingly, the Company’s financial statements presented herein have been, and on a go-forward basis, will be prepared using a December 31 year-end date, and each operating period will cover twelve full calendar months. Share Purchase Agreement On October 19, 2015, the Company entered into a share purchase agreement (the “Share Purchase Agreement”) with EGOOS Mobile Technology Company Limited, a British Virgin Islands holding company (“EGOOS BVI”), which owns 100% of EGOOS Mobile Technology Company Limited, a Hong Kong company (“EGOOS HK”), which owns 100% of Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“WOFE SQEC was incorporated on November 11, 2013. SQEC On January 28, 2015, ownership of SQEC’s was transferred from Bao, Shanshan to Xiang, Zuyue for a consideration of approximately $1,629,062 (RMB 10,000,000). Simultaneously, Xiang, Zuyue transferred 40% of his ownership to Li, Na for a consideration of $651,625 (RMB 4,000,000). On July 24, 2015, SQEC entire ownership was collectively transferred from Xiang, Zuyue and Li, Na to GZYZ for a consideration of approximately $1,629,062 (RMB 10,000,000). On March 16, 2015, the GZRS was incorporated as a wholly-owned subsidiary of SQEC. GZRS has an authorized capital of RMB1,000,000. As of the date of this report, GZRS has not been capitalized. Pursuant to the Share Purchase Agreement the Company issued a convertible note to EGOOS BVI’s sole shareholder for 100% equity interest in EGOOS BVI. The note is convertible into 15,000,000 shares of the Company’s common stock contingent on the following conditions: (i) the Company has effectuated a reverse split of all of the issued and outstanding Common Stock as of the date of the issuance of the note (the “Reverse Split”) and (ii) the average closing price of the common stock for 3 business days within any period of 10 consecutive business days exceeds $1.00 per share (the “Conversion Conditions”). Upon conversion of the note, the existing shareholders of the Registrant will own an aggregate of 24.7% of the post-acquisition entity. The note was issued at par, it is unsecured, interest free, and is due on the second anniversary of the issuance date of the note. In accounting for the note, the Company has assumed that the note does not carry any discount from face that requires accretion as interest expense to its results of operations, including any potential beneficial conversion features. On January 26, 2016, the Reverse Split was effectuated, and subsequently, on February 4, 2016, the convertible promissory note was converted into 15 million newly issued shares of the Company’s common stock. The conversion of the promissory note has been recognized retroactively to the first period presented as a component of the reverse takeover transactions detailed below. The consolidated financial statements were prepared assuming that the Company had control over EGOOS BVI and its intermediary holding companies, operating subsidiaries, and variable interest entities: EGOOS HK, WOFE, GZYZ, SQEC, and GZRS from the first period presented. The transactions detailed above had been accounted for as reverse takeover transactions and were capitalization of the Company, including the conversion of the convertible promissory note; accordingly, the Company (the legal acquirer) was considered the accounting acquiree and EGOOS BVI (the legal acquiree) was considered the accounting acquirer. No goodwill had been recorded. As a result of this transaction, the Company was deemed to be a continuation of the business of EGOOS BVI and SQEC. On December 30, 2021, the Company entered into a stock sale and purchase agreement (the “Agreement”) with Terry Chu (the “Buyer”), pursuant to which the Company sold to Buyer (the “Disposal Transaction”) EGOOS Mobile Technology Company Limited, a British Virgin Islands corporation (“EGOOS”) and wholly-owned subsidiary of the Company, together with VIE, for an aggregate purchase price of $1.00 via selling all of EGOOS’ issued and outstanding share capital. Before their entry into the Agreement, no material relationship existed between the Company and the Buyer, on one hand, and EGOOS and the Buyer on the other hand. On December 30, 2021, the Company and Buyer consummated the Disposal Transaction set forth in the Agreement and as a result the Company completely disposed its legacy audio bank card business in the People’s Republic of China, which has ceased its meaningful operations since 2019. As such, the Company currently does not have the VIE structure or VIE agreements. On October 18, 2021, the Company incorporated two wholly owned subsidiaries New York Link Capital Inc. (“New York Link”) and New York Tech Capital Inc. (“New York Tech”) for conducting digital currency business, including digital mining, trading of digital currencies and other relevant business. New York Link is holding company of New York Tech, holding 100% equity interest in New York Tech. On October 26, 2021, New York Tech entered into a Hosting and Colocation Services Agreement (the “Gigacrypto Agreement”) with PLANBTC, LLC, d/b/a Gigacrypto, Inc., a Wyoming limited liability company (“Gigacrypto”), pursuant to which Gigacrypto deploys, operates and maintains certain crypto currency mining equipment to mine Bitcoins (the “Equipment”) that New York Tech has provided thereto for a service fee equal to twelve percent (12%) of the total Bitcoin mining revenue payable in Bitcoin, irrespective of their dollar value, unless indicated otherwise by Gigacrypto. In accordance with the Gigacrypto Agreement, New York Tech shall reimburse certain fees and expenses, including the energy costs of operating the Equipment, actually incurred as a result of operating any of the Equipment. In connection with the Gigacrypto Agreement, on October 26, 2021, New York Tech and Gigacrypto signed the initial statement of work to the Gigacrypto Agreement, which provided the initial service term of three (3) years from the date of the Statement of Work. The Gigacrypto Agreement shall expire upon the end of the term of the latest Statement of Work unless terminated earlier. Center Florence was incorporated on March 18, 2021 as a Delaware corporation. On April 16, 2021, Center Florence entered into a securities exchange agreement Pursuant to the Securities Exchange Agreement, each and all of the Members of St. Louis have agreed to transfer all of their respective membership interests (the “St. Louis Membership Interests”) to the Center Florence in exchange for the respective membership interests in the Center Florence Holding; each and all of the Members of Royal Park have agreed to transfer all of their respective membership interests (the “Royal Park Membership Interests”) to the Center Florence in exchange for the respective membership interests in the Center Florence Holding; and, the Member of Florence has agreed to transfer all of its membership interest (the “Florence Membership Interests”) to Center Florence in exchange for the respective membership interests in the Center Florence Holding. In connection with above transaction, Center Florence Holding has agreed to contribute and transfer each and all of the St. Louis Membership Interests, Royal Park Membership Interests and Florence Membership Interests (collectively, the “Transferred Membership Interests”) to Center Florence in exchange for one hundred (100) shares of the Center Florence Holding’s common stock to be issued by Center Florence, resulting in Center Florence Holding owning 100% of the Center Florence’s common shares, issued and outstanding. On November 18, 2021, the Company entered into a Share Purchase/Exchange Agreement (the “Agreement”) with Center Florence Holding LLC (“Center Florence Holding”) and Center Florence, Inc. (“Center Florence”), a wholly-owned subsidiary of Center Florence Holding. Under the Agreement, Center Florence Holding sold and transferred one hundred percent (100%) of its shares in Center Florence to the Company in exchange for four million six hundred thousand (4,600,000) shares (the “Exchange Shares”) of the Company’s common stock (the “Common Stock”), par value $0.001 per share, at an agreed price of $4.00 per share of the Common Stock for a total valuation of $18,400,000 of the Company. On December 1, 2021, the share exchange transaction was closed and the Center Florence became wholly-owned subsidiary of the Company. The consolidated financial statements were prepared assuming that Center Florence has controlled Subsidiaries: St Louis, Royal Park and Florence from the first period presented. The transaction detailed above has been accounted for as an acquisition of business. Customer-related intangible assets of $175,536 and goodwill of $63,417 have been recorded. As a result of this transaction, Center Florence is deemed to be a continuation of the business of St Louis, Royal Park and Florence. On February 15, 2022, the Company entered into a Stock Sale and Purchase Agreement with Hudson Capital Inc. for buying all shares of Hudson Capital USA Inc. (“Hudson Capital USA”) for $1 and the transaction was closed at February 16, 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Method of Accounting The Company maintains its general ledger and journals with the accrual method of accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements. B. Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). C. Principles of Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries for which the Company is the primary beneficiary. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries. As of March 31, 2022, the detailed identities of the consolidating subsidiaries were as follows: Name of Company Place of incorporation Attributable Registered New York Link Capital Inc. (“NY Link”) New York 100 % $ 100 New York Tech Capital Inc. (“NY Tech”) New York 100 % 100 Center Florence, Inc. Delaware 100 % 1 Center St. Louis LLC (“St. Louis”) Delaware 100 % 1,000 Royal Park, LLC (“Royal Park”) South Carolina 100 % 1,000 Florence Development, LLC. (“Florence”) Delaware 100 % 1,000 Time Capital Inc. (“Time Capital”) New York 100 % 100 Time Capital Management Inc. (“Time Capital Management”) New York 100 % 100 Hudson Capital USA Inc. (“NY Link”) New York 100 % 100 Hongkong Internet Financial Services Limited (“HKIFS”) Hong Kong 100 % 0.14 As of December 31, 2021, the detailed identities of the consolidating subsidiaries were as follows: Name of Company Place of incorporation Attributable Registered New York Link Capital Inc. (“NY Link”) New York 100 % $ 100 New York Tech Capital Inc. (“NY Tech”) New York 100 % 100 Center Florence, Inc. Delaware 100 % 1 Center St. Louis LLC (“St. Louis”) Delaware 100 % 1,000 Royal Park, LLC (“Royal Park”) South Carolina 100 % 1,000 Florence Development, LLC. (“Florence”) Delaware 100 % 1,000 D. Unaudited Interim Financial Information These unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The consolidated balance sheets and certain comparative information as of December 31, 2021 are derived from the audited consolidated financial statements and related notes for the year ended December 31, 2021 (“2021 Annual Financial Statements”), included in the Company’s 2021 Annual Report on Form 10-K. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2021 Annual Financial Statements. E. Use of estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are used for, but not limited to, the accounting for certain items such as allowance for doubtful accounts, depreciation and amortization, impairment, inventory allowance, taxes and contingencies. F. 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’s management 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’s management 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. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. G. Cash and cash equivalents The Company classifies the following instruments as cash and cash equivalents: cash on hand, unrestricted bank deposits, and all highly liquid investments purchased with original maturities of three months or less. H. Accounts receivable Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. I. Other receivables Other receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An allowance for doubtful accounts is made when recovery of the full amount is doubtful. J. Property, plant and equipment Lands are carried at cost and no depreciation is provided. Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method with a salvage value from 0% - 10%. Estimated useful lives of the plant and equipment are as follows: Building and improvement 15-40 years Furniture and equipment 5-28 years Digital mining machine 5 years Office equipment 3 years Office furniture 5 years Motor vehicle 5 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. K. Intangible Assets Intangible assets, comprising digital assets, accounting software and big data platform, which are separable from the property and equipment, are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the assets. Digital assets Digital assets (including Bitcoin and USDT) are included in current assets in the accompanying consolidated balance sheets. Digital assets purchased are recorded at cost and digital assets awarded to the Company through its mining activities are accounted for in connection with the Company’s revenue recognition policy disclosed below. Digital assets held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For the periods ended March 31, 2022 and 2021, the Company has recognized impairment loss of $0 and $0 of its digital assets, respectively. Purchases of digital assets by the Company, if any, will be included within investing activities in the accompanying consolidated statements of cash flows, while digital assets awarded to the Company through its mining activities are included within operating activities on the accompanying consolidated statements of cash flows. The sales of digital assets are included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such sales are included in “realized gain (loss) on exchange of digital assets” in the consolidated statements of operations and comprehensive income (loss). The Company accounts for its gains or losses in accordance with the first-in first-out method of accounting. Separable Intangible Asset - Customer-related intangible assets Customer-related intangible assets arising from the acquisition of subsidiary which has been separated from goodwill by complying with ASC 805-20-55 which meets the contractual-legal criterion for recognition separately from goodwill even though the Company cannot sell or otherwise transfer these lease contracts. Customer-related intangible assets are accounted for as intangible assets with useful lives of five years. It would be amortized for the useful lives on monthly basis. The Company tests intangible assets for impairment at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. L. Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interests of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. M. Goodwill Goodwill is the excess of the consideration transferred over the fair value of the acquired assets and assumed liabilities in a business combination. The Company tests goodwill for impairment at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. N. Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. For the periods ended March 31, 2022 and 2021, the Company did not recognize any impairment loss of its long-lived assets. O. Long term investment The Company’s long-term investments include equity securities without readily determinable fair values and available-for-sale investments. Equity securities without readily determinable fair values As of March 31, 2022 and December 31, 2021, the Company’s investment in two privately held companies over which the Company neither has control nor significant influence through investment in common stock. Equity securities not accounted for using the equity method are carried at fair value with unrealized gains and losses recorded in the consolidated income statements, according to ASC 321, Investments - Equity Securities. The Company elected to record the equity investments in privately held companies using the measurement alternative at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly transactions for identical or similar investments of the same issuer. Equity investments in privately held companies accounted for using the measurement alternative are subject to periodic impairment reviews. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the fair value of these equity securities, including consideration of the impact of the COVID-19 pandemic. In computing realized gains and losses on equity securities, the Company determines cost based on amounts paid using the average cost method. Dividend income is recognized when the right to receive the payment is established. Available-for-sale investments For investments in investees’ shares which are determined to be debt securities, the Group accounts for them as available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income as a component of shareholders’ equity. Declines in the fair value of individual available-for-sale investments below their amortized cost due to credit-related factors are recognized as an allowance for credit losses, whereas if declines in the fair value is not due to credit-related factors, the loss is recorded in other comprehensive income / (loss). P. Accounting for the Impairment of Long-lived assets The long-lived assets held by the Company are reviewed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 360-10-35, “Accounting for the Impairment or Disposal of Long-Lived Assets,” for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Impairment is present if carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company believes no impairment has occurred to its assets during 2021 and 2020. Q. Income taxes The Company uses the accrual method of accounting to determine income taxes for the year. The Company has implemented FASB ASC 740 Accounting for Income Taxes. Income tax liabilities computed according to the United States, People’s Republic of China (PRC), and Hong Kong tax laws provide for the tax effects of transactions reported in the financial statements and consists of taxes currently due, plus deferred taxes, related primarily to differences arising from the recognition of expenses related to the depreciation of plant and equipment, amortization of intangible assets, and provisions for doubtful accounts between financial and tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses that are available to offset future income taxes. A valuation allowance is recognized for deferred tax assets if it is more likely than not, that the deferred tax assets will either expire before the Company is able to realize that tax benefit, or that future realization is uncertain. R. Stock-based compensation The Company has elected to use the Black-Scholes-Merton (“BSM”) pricing model to determine the fair value of stock options on the dates of grant. Also, the Company recognizes stock-based compensation using the straight-line method over the requisite service period. The Company values stock awards using the market price on or around the date the shares were awarded and includes the amount of compensation as a period compensation expense over the requisite service period. For the periods ended March 31, 2022 and 2021, $0 and $0 stock-based compensation was recognized. S. Foreign currency translation The accompanying financial statements are presented in United States dollars (USD). For the period ended March 31, 2022, the functional currency of the Company is the USD. For the period ended March 31, 2021, the functional currency of the Company is the USD and Renminbi (RMB). The financial statements are translated into USD from RMB at period-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. Exchange rates March 31, December 31, Year-end/period-end RMB : US$ exchange rate 6.5713 6.4515 Average annual/period RMB : US$ exchange rate 6.4844 6.3757 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollar at the rates used in translation. T. Revenue recognition The Company recognizes services revenue when the following criteria have been met: 1) it has agreed and entered into a contract for service with it customers which the Company identifies the contract and determines the transactions price with customers, 2) the contract has set forth a fixed fee for the services to be rendered which the Company has determined the transactions price and the allocation of such price to performance obligations with the customers, 3) the Company has fully rendered service to its customers, and there are no additional obligations that exist that under the terms of the contract that the Company has not fulfilled that the Company recognizes revenue when the performance obligation is satisfied, and 4) the Company has either received payment, or reasonably expects payment from the customer in accordance to the payment terms set forth in the contract. Cryptocurrency When the cryptocurrency is sold in the exchange, which time revenue is recognized. There is no significant financing component in these transactions. Fair value of the cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial position and results from operations. Rental income Rental income from letting the Company’s of investment properties is recognized on a straight-line basis over the lease term. Clubhouse services Clubhouse income is recognized when services are rendered. U. Cost of revenue Cryptocurrency The cost of revenue of cryptocurrency is the corresponding amount of intangible assets. Clubhouse services The cost of revenue of clubhouse services is mainly the labour costs and cost of food and beverage. V. Earnings per share Basic earnings per share is computed on the basis of the weighted average number of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of common stock and common stock equivalents outstanding. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. W. Comprehensive loss Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company presents components of comprehensive income with equal prominence to other financial statements. The Company’s current component of other comprehensive income is the foreign currency translation adjustment. X. Subsequent events The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. Y. Fair Value of Financial Instruments ASC 825, Financial Instruments, requires that the Company discloses estimated fair values of financial instruments. The carrying amounts reported in the balance sheets for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value. The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. For certain financial instruments, including cash and cash equivalents, loan receivables and short-term bank loans, the carrying amounts approximate fair value due to their relatively short maturities. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10 As of March 31, 2022: Quoted in Active (Level 1) Significant (Level 3) Significant (Level 3) Total Financial assets: Cash $ 555,717 $ - $ - $ 555,717 Total financial assets $ 555,717 $ - $ - $ 555,717 As of December 31, 2021: Quoted in Active (Level 1) Significant (Level 3) Significant (Level 3) Total Financial assets: Cash $ 2,877,456 $ - $ - $ 2,877,456 Total financial assets $ 2,877,456 $ - $ - $ 2,877,456 Z. Recently issued accounting standards In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The standard did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. ASU 2019-12 will be effective for the Company in the first quarter of 2021. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations, cash flows or disclosures. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4 and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6 and Issue 7 were effective for the Company beginning on January 1, 2020. The Company does not anticipate that the adoption of the new standard will have a material effect on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have any impact on the Company’s consolidated financial statement presentation or disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This update is effective for annual periods beginning after December 15, 2021, and early application is permitted. This guidance should be applied either prospectively to all transactions that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or retrospectively to those transactions. The Company does not expect the impact of this guidance to have a material impact on the Company’s consolidated financial statements. Other than the above, management does not believe that any of the recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. |
Business Acquisition
Business Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | NOTE 3. BUSINESS ACQUISITION Acquisition of Center Florence, Inc. On November 18, 2021, the Company entered into a Share Purchase/Exchange Agreement (the “Agreement”) with Center Florence Holding LLC (“Center Florence Holding”) and Center Florence, Inc. (“Center Florence”), a wholly-owned subsidiary of Center Florence Holding. Under the Agreement, Center Florence Holding will sell and transfer one hundred percent (100%) of its shares in the Center Florence to the Company in exchange for four million six hundred thousand (4,600,000) shares (the “Exchange Shares”) of the Company’s common stock (the “Common Stock”), par value $0.001 per share, at an agreed price of $4.00 per share of the Common Stock for a total valuation of $18,400,000 of the Company. On December 1, 2021, the share exchange transaction was closed and the Center Florence became a wholly-owned subsidiary of the Company. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at fair value at the date of acquisition. The purchase price of Center Florence was allocated as of December 1, 2021, the date of acquisition, as follows: USD (Audited) Cash and cash equivalents $ 48,850 Net assets acquired, excluding cash and cash equivalents, related parties balances and property, plant and equipment, net (1,882,537 ) Property, plant and equipment, net 19,994,734 Separable Intangible Assets - Customer-related intangible assets 175,536 Goodwill 63,417 Total purchase consideration $ 18,400,000 The purchase price allocation was determined by the Company with the assistance of an independent valuation appraiser. The fair value of the acquired assets and liabilities were measured by using the multi-period excess earnings method, replacement cost valuation methods and discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. Center Florence has no intangible assets to be acquired by the Company. Goodwill resulted from the acquisition is not deductible for tax purposes, which was primarily attributable to intangible assets that cannot be recognized separately as identifiable assets under GAAP, and comprised (a) the assembled workforce and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. Acquisition of Hudson Capital USA Inc. On February 15, 2022, the Company entered into a Stock Sale and Purchase Agreement with Hudson Capital Inc. for buying all shares of Hudson Capital USA Inc. (“Hudson Capital USA”) for $1 and the transaction was closed at February 16, 2022. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at fair value at the date of acquisition. The purchase price of Hudson Capital USA was allocated as of February 16, 2022, the date of acquisition, as follows: USD (Unaudited) Cash and cash equivalents $ 21,478 Net assets acquired, excluding cash and cash equivalents, related parties balances and property, plant and equipment, net (1,416 ) Property, plant and equipment, net 0 Separable Intangible Liabilities – Lease commitment-related intangible liabilities (48,101 ) Goodwill 28,139 Total purchase consideration $ 100 The purchase price allocation was determined by the Company with the assistance of an independent valuation appraiser. The fair value of the acquired assets and liabilities were measured by using the multi-period excess earnings method, replacement cost valuation methods and discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. Center Florence has no intangible assets to be acquired by the Company. Goodwill resulted from the acquisition is not deductible for tax purposes, which was primarily attributable to intangible assets that cannot be recognized separately as identifiable assets under GAAP, and comprised (a) the assembled workforce and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. Acquisition of Hongkong Internet Financial Services Limited On March 30, 2022, Hudson Capital USA, the subsidiary of the Company, entered into a Bought and Sold Note with Hudson Capital Inc. and executed an Instrument of Transfer to transfer its one (1) share, which represent all interest, in its wholly-owned Hong Kong subsidiary, Hongkong Internet Financial Services Limited for HK$1. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at fair value at the date of acquisition. The purchase price of Hongkong Internet Financial Services Limited was allocated as of March 30, 2022, the date of acquisition, as follows: USD (Unaudited) Cash and cash equivalents $ 0 Net assets acquired, excluding cash and cash equivalents, and related parties balances 0 Goodwill 0.14 Total purchase consideration $ 0.14 The purchase price allocation was determined by the Company with the assistance of an independent valuation appraiser. The fair value of the acquired assets and liabilities were measured by using the multi-period excess earnings method, replacement cost valuation methods and discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. Center Florence has no intangible assets to be acquired by the Company. Goodwill resulted from the acquisition is not deductible for tax purposes, which was primarily attributable to intangible assets that cannot be recognized separately as identifiable assets under GAAP, and comprised (a) the assembled workforce and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 4. CASH AND CASH EQUIVALENTS Cash consisted of the following: As of March 31, As of (Unaudited) (Audited) Cash on hand $ - $ 6,090 Cash in banks 555,717 2,871,366 Total cash $ 555,717 $ 2,877,456 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 5. ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: As of March 31, As of December 31, (Unaudited) (Audited) Accounts receivable $ 77,158 $ 64,089 Less: allowance - - Less: impairment - - Accounts receivable, net $ 77,158 $ 64,089 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 6. INVENTORY Inventory consisted of the following: As of March 31, As of December 31, (Unaudited) (Audited) Consumable store $ 1,996 $ 2,673 Less: allowance - - Less: impairment - - Total $ 1,996 $ 2,673 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 7. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: As of March31, As of December 31, (Unaudited) (Audited) Land $ 18,148,238 $ 18,148,238 Building and improvement 2,614,790 2,614,790 Furniture and equipment 285,694 261,397 Digital mining equipment 3,218,350 1,300,000 Motor vehicle 100,000 100,000 Total property and equipment 24,367,072 22,424,425 Less: accumulated depreciation (1,392,817 ) (1,284,233 ) Less: impairment - - Property, plant and equipment, net $ 22,974,255 $ 21,140,192 Depreciation expense was $108,584 and $0, respectively for the years ended December 31, 2021 and 2020. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 8. INTANGIBLE ASSETS, NET The intangible assets consisted of the following: As of March 31, 2022 (Unaudited) Items Gross Accumulated Impairment Net $ $ $ $ Intangible assets not subject to amortization: Goodwill (Note 9) 91,556 - - 91,556 Digital assets - Bitcoin 9,230 - - 9,230 Digital assets - USDT 67,035 - - 67,035 Intangible assets subject to amortization: --5-year life: Customer-related intangible assets 175,536 (11,702 ) - 163,834 Total 343,357 (11,702 ) - 331,655 As of December 31, 2021 (Audited) Items Gross Accumulated Impairment Net $ $ $ $ Intangible assets not subject to amortization: Goodwill (Note 9) 63,417 - - 63,417 Digital assets 30,670 - (13,589 ) 17,081 Intangible assets subject to amortization: --5-year life: Customer-related intangible assets 175,536 (2,923 ) - 172,613 Total 269,623 (2,923 ) (13,589 ) 253,111 Digital assets As of March 31, As of December 31, (Unaudited) (Audited) Digital assets Bitcoin - Digital mining costs $ 9,230 $ 30,670 USDT 67,035 - Less: accumulated amortization - - Less: impairment - (13,589 ) $ 76,265 $ 17,081 On October 26, 2021, the Company has entered into hosting and colocation services agreement with GigaCrypto, Inc. (“GigaCrypto”) to deploy and maintain the Company’s mining equipment to locations operated by GigaCrypto. GigaCrypto provides electrical power, internet access and maintenance services. The contract is enforceable for 3 years and GigaCrypto will receive mining services fee, including the management service fee, power costs and additional costs, which is caused by government regulatory conditions changes. The Company is entitled to all cryptocurrency award for successfully adding a block to the blockchain. The cryptocurrency award would be capitalized as intangible assets according to the costs incurred, which includes mining services fees, depreciation of mining equipment and power costs. What the Company receives, if any, is noncash consideration, which the Company measures at fair value on the date received, which is not materially different than the fair value at contract inception or the time the Company has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time intangible assets is recognized. There is no significant financing component in these transactions. Fair value of the cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt. No amortization on digital assets and the digital assets include Bitcoin and USDT as the periods ended March 31, 2022 and 2021. Impairment on intangible assets was $0 and $0, respectively, for the periods ended March 31, 2022 and 2021. Customer-related intangible assets As of March 31, As of December 31, (Unaudited) (Audited) Separable Intangible Assets Customer-related intangible assets $ 175,536 $ 175,536 Less: accumulated amortization (11,702 ) (2,923 ) Less: impairment - - $ 163,834 $ 172,613 The fair value of the Customer-related intangible assets was determined by the Company with the assistance of independent valuation appraisers using the income-based valuation methodology. Amortization on Customer-related intangible assets was $8,779 and $0, respectively, for the periods ended March 31, 2022 and 2021. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 9. GOODWILL Changes in the carrying amount of goodwill for the period ended March 31, 2022 and year ended December 31, 2021 consisted of the following: As of As of (Unaudited) (Audited) Beginning balance $ 63,417 $ - Addition (Note 3) 28,139 63,417 Less: accumulated impairment loss - - Less: disposal and write off - - $ 91,556 $ 63,417 In the annual goodwill impairment assessment, the Company concluded that the carrying amounts of certain reporting units exceeded their respective fair values and recorded impairment losses of $0 and $0 for the periods ended March 31, 2022 and 2021. The fair value of the reporting units was determined by the Company with the assistance of independent valuation appraisers using the income-based valuation methodology. |
Long Term Investment
Long Term Investment | 3 Months Ended |
Mar. 31, 2022 | |
Long Term Investment [Abstract] | |
LONG TERM INVESTMENT | NOTE 10. LONG TERM INVESTMENT The long term investment was valued at cost and consisted of the following: As of March 31, As of December 31, (Unaudited) (Audited) Equity securities without readily determinable fair values Archax Holdings Ltd. $ 500,000 $ 500,000 Montis Digital Limited 250,000 250,000 750,000 750,000 Available-for-sale investments Archax Holdings Ltd.- Principal of Convertible note loan 106,289 106,289 Archax Holdings Ltd.- Interest on Convertible note loan 2,819 722 109,108 107,011 Total cost of long term investment 859,108 857,011 Less: impairment - - $ 859,108 $ 857,011 a) Equity securities without readily determinable fair values On June 4, 2021, the Company and Hudson Capital USA Inc. (the “Seller”) entered into a share transfer agreement (the“Archax SPA”), pursuant to which the Company agreed to buy from the Seller $500,000 worth of shares (1.74% of ownership) of Archax Holdings Ltd. (“Archax”), a company organized under the laws of England, UK. Archax is a global digital asset trading platform and ecosystem. In addition, on June 4, 2021, the Company and the Seller entered into another share transfer agreement (the“Montis SPA”), pursuant to which the Company agreed to buy from the Seller $250,000 worth of shares (2.63% of ownership) of Montis Digital Limited (“Montis”), a company organized under the laws of Gibraltar. Montis primarily provides marketing and consulting services for digital assets and related entities in the digital asset ecosystems. Each of the Archax SPA and Montis SPA contained customary representations and warranties for transactions of this nature and scale. The Company and Seller are related parties because the majority of the board of directors of the Company are the board members of the Seller, constituting the majority of the board of directors of the Seller and Hon Man Yun serves as the Chief Financial Officer of both the Company and Seller. On June 16, 2021, the Company and Seller closed the stock purchase transaction in accordance with the Montis SPA. On June 17, 2021, the Company and Seller closed the stock purchase transaction in accordance with the Archax SPA. For the year ended December 31, 2021, the Company did not record upward adjustments or downward adjustments on the equity securities. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the fair value of the equity securities. As of December 31, 2021, the Company did not recognize impairment against the equity securities. b) Available-for-sale investments On November 16, 2021, the Company closed the convertible note loan (the “Note”) transaction Archax. The Notes shall be known as 8% fixed rate unsecured convertible loan notes 2022 Series III and shall be issued by Archax in integral multiples of $1.00 and maturity date of the Note would be the last Business Day in July 2022, which is July 22, 2022. Conversion price would be 80% lower of the lowest price per share which would have been paid for Senior Shares. Interest on Note was $723 and $0, respectively for the periods ended March 31, 2022 and 2021. For the period ended March 31, 2022, the Company did not record upward adjustments or downward adjustments on the equity securities. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the fair value of the equity securities. As of March 31, 2022, the Company did not recognize impairment against the equity securities. |
Short-Term Loans
Short-Term Loans | 3 Months Ended |
Mar. 31, 2022 | |
Short-Term Loans [Abstract] | |
SHORT-TERM LOANS | NOTE 11. SHORT-TERM LOANS Principal of short-term loans consisted of the following: As of March 31, As of December 31, (Unaudited) (Audited) 7.00% bank loan, originally due July 15, 2020, but extended to December 31, 2022 $ 160,531 $ 166,777 - - - - Total $ 160,531 $ 166,777 |
Long-Term Loan
Long-Term Loan | 3 Months Ended |
Mar. 31, 2022 | |
Short-Term Loans [Abstract] | |
LONG-TERM LOAN | NOTE 12. LONG-TERM LOAN Principal of long-term loans consisted of the following: As of March 31, As of December 31, (Unaudited) (Audited) 6.00% bank loan, due April 10, 2024 $ 1,124,596 $ 1,133,959 3.75% U.S federal government SBA loan, due June 27, 2030 149,900 149,900 3.75% U.S. federal government SBA loan, due June 27, 2030 150,000 150,000 Total $ 1,424,496 $ 1,433,859 |
Note Payables
Note Payables | 3 Months Ended |
Mar. 31, 2022 | |
Short-Term Loans [Abstract] | |
NOTE PAYABLES | NOTE 13. NOTE PAYABLES Note payables consisted of the following: As of March 31, As of December 31, (Unaudited) (Audited) PX Global Advisors, LLC Principal $ 2,000,000 $ 2,000,000 Interest 60,274 10,959 Total $ 2,060,274 $ 2,010,959 On December 12, 2021, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with PX Global Advisors, LLC (“PX Global Advisors”), pursuant to which the PX Global Advisors purchased a convertible promissory note (the “Note”) from the Company in the principal amount of $2,000,000. Pursuant to the terms of the Note, the Note bears an interest rate of 10% per annum, the principal amount and accrued but unpaid interest of the Note shall be due and payable on December 12, 2022 (the “Maturity Date”) and such principal amount and the interest accrued thereon shall be convertible into shares of the Company’s common stock at the selection of the PX Global Advisors on the Maturity Date at a fixed conversion price of $3.20 per share. The Company shall have the right to prepay the outstanding balance of and interest on this Note at any time prior to the Maturity Date. The Company intends to use the net proceeds from the Note for general working capital purposes. On December 13, 2021, the Company issued the Note to the PX Global Advisors and consummated the transaction as set forth in the Purchase Agreement. The Note was wholly recognized as a liability under ASC 470-20-25-10 and ASC 470-20-25-12. Interest expense was $49,315 and $0, respectively for the periods ended March 31, 2022 and 2021. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14. RELATED PARTY TRANSACTIONS a) Long term investment On June 4, 2021, the Company and Hudson Capital USA Inc. (the “Seller”) entered into a share transfer agreement (the “Archax SPA”), pursuant to which the Company agreed to buy from the Seller $500,000 worth of shares (1.74% of ownership) of Archax Holdings Ltd. (“Archax”), a company organized under the laws of England, UK. Archax is a global digital asset trading platform and ecosystem. In addition, on June 4, 2021, the Company and the Seller entered into another share transfer agreement (the “Montis SPA”), pursuant to which the Company agreed to buy from the Seller $250,000 worth of shares (2.63% of ownership) of Montis Digital Limited (“Montis”), a company organized under the laws of Gibraltar. Montis primarily provides marketing and consulting services for digital assets and related entities in the digital asset ecosystems. Each of the Archax SPA and Montis SPA contained customary representations and warranties for transactions of this nature and scale. The Company and Seller are related parties because the majority of the board of directors of the Company are the board members of the Seller, constituting the majority of the board of directors of the Seller and Hon Man Yun serves as the Chief Financial Officer of both the Company and Seller. b) Property, plant and equipment On May 28, 2021, the Company and Hudson Capital USA Inc. (the “Seller”) entered into a vehicle purchase agreement, pursuant to which the Company agreed to buy from the Seller $100,000 worth of motor vehicle. The Company and Seller are related parties because the majority of the board of directors of the Company are the board members of the Seller, constituting the majority of the board of directors of the Seller and Hon Man Yun serves as the Chief Financial Officer of both the Company and Seller. c) Related party payables Related party payables consisted of the followings: As of March 31, As of December 31, (Unaudited) (Audited) PX SPAC Capital Inc. Principal $ 36,916 $ 36,916 Interest 768 586 Total $ 37,684 $ 37,502 The amount was provided as working capital to financial the Company’s operations. The amount is unsecured, 2% annual interest bearing and due on demand. Interest expense was $182 and $0, respectively for the periods ended March 31, 2022 and 2021. |
Taxation
Taxation | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXATION | NOTE 15. Taxation The Company was incorporated in the state of Delaware, U.S.A. The Company did not generate any taxable income from its operations for the periods ended March 31, 2022 and 2021. For period ended March 31, 2022, the Company, Center Florence, Inc. (“CFI”), Center St. Louis LLC (“St. Louis”), and Florence Development, LLC (“Florence”) are subject to U.S. federal and Delaware franchise tax. New York Link Capital Inc. (“NY Link”), New York Tech Capital Inc. (“NY Tech”) are subject to U.S. federal and New York state income taxes, Royal Park, LLC (“Royal Park”) and are subject to U.S. federal and South Carolina state income taxes. For U.S. Federal income tax purpose, the Company and its subsidiaries did not elect to file consolidated tax returns and file separately as individual entity. For each company they have filed separate federal and state tax returns and calculated the relevant taxes for taxable income; and relevant net operating loss will be carry forwards according to relevant tax periods. For U.S. Federal income tax purpose, the Company, NY Link, NY Tech, CFI, St. Louis, Royal Park and Florence have net operating loss, or NOL carryforwards of approximately $983,255 at March 31, 2022. For Delaware franchise tax purpose, the Company, CFI, St. Louis, and Florence are subject to annual franchise tax and have no NOL carry forwards. For New York income tax purpose, NY Link and NY Tech have no net operating loss, or NOL carry forwards at March 31, 2022. For South Carolina, income tax purpose, Royal Park has net operating loss, or NOL carry forwards of approximately $857,487 at March 31, 2022. For period ended March 31, 2021, EGOOS Mobile Technology Company Limited (“EGOOS BVI”) was incorporated in the BVI. There is no income tax for a company domiciled in the BVI. Accordingly, the Company’s consolidated financial statements do not present any income tax provision related to the BVI tax jurisdiction where EGOOS BVI is domiciled. EGOOS Mobile Technology Company Limited (“EGOOS HK”), which is subject to a 16.5% corporate income tax. EGOOS HK has no net operating loss, or NOL carryforward, as EGOOS HK has no operation for the period. Move the Purchase Consulting Management (Shenzhen) Co., Ltd. (“MPCM”), Guangzhou Yuzhi Information Technology Co., Ltd. (“GZYZ”), Shenzhen Qianhai Exce-card Technology Co., Ltd. (“SQEC”) and Guangzhou Rongsheng Information Technology Co., Ltd. (“GZRS”) are subject to PRC Enterprise Income Tax, which is 25% on taxable income. MPCM, GZYZ, SQEC and GZRS has no net operating loss, or NOL carryforward, as they have no operation for the period. a) Corporate Income Taxes The components of the income tax expense are as follows: Three months Three months (Unaudited) (Unaudited) Current $ - $ - Deferred - - Total $ - $ - Taxes recoverable (payable) consisted of the following at March 31, 2022 and December 31, 2021: As of As of (Unaudited) (Audited) Income tax recoverable - current $ - $ - Income tax payable – noncurrent $ - $ - As of March 31, 2022 and December 31, 2021, current and noncurrent tax payable were $0 and $0. The (benefit) provision for income taxes on loss from continuing operations consisted of the following: Three months Three months (Unaudited) (Unaudited) Current: Federal $ - $ - State - - Hong Kong - - - - Deferred: Federal - - State - - Total provision (benefit) for income taxes $ - $ - The following is a reconciliation of the difference between the actual (benefit) provision for income taxes and the (benefit) provision computed by applying the federal statutory rate on income before income taxes from continuing operations: Three months Three months (Unaudited) (Unaudited) Tax at federal statutory rate $ - $ - Foreign rate differential - - Others - - Valuation allowance - - Total provision (benefit) for income taxes $ - $ - b) Deferred Taxes Assets and Liabilities Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred taxes are comprised of the following: As of As of (Unaudited) (Audited) Non-Current Deferred Tax Assets: NOL (Federal) $ 294,977 $ 294,977 NOL (NY) - - NOL (SC) 42,874 42,874 Net Non-Current Deferred Tax Assets before Valuation Allowance 337,851 337,851 Less: Valuation Allowance (337,851 ) (337,851 ) Non-Current Deferred Tax Assets, Net: - - Total Deferred Assets, Net: $ - $ - c) Taxes Payable Taxes payable consisted of the following: As of As of December 31, 2021 (Unaudited) (Audited) Corporate income tax payable $ - $ - Franchise tax payable 1,240 1,200 Other surtaxes payable - - Total $ 1,240 $ 1,200 |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 16. STOCKHOLDERS’ EQUITY Common stock As of March 31, 2022 and December 31, 2021, the Company has 100,000,000 shares of common stock authorized, 17,465,992 shares and 17,465,992 shares issued and outstanding at par value of $0.001 per share, respectively. On November 1, 2021, the Company filed an amended and restated certificate of incorporation (the “Certificate of Incorporation”) with the State of Delaware, which has effected a one-for-five reverse stock split (the “Reverse Stock Split”) of the Company’s outstanding common stock, par value $0.001 per share (the “Common Stock”). As a result of the Reverse Stock Split, the number of outstanding shares of Common Stock has been reduced by the ratio of one-for-five. No fractional shares will be issued in connection with the Reverse Stock Split and the fractional share of the Common Stock shall be rounded up to the nearest whole share. In connection with the Reverse Stock Split, our par value per share did not change. The number of shares of common stock outstanding has been changed accordingly upon the effectiveness of the Reverse Stock Split. Stock option compensation On October 20, 2017, the Company issued to Mr. Yang Liu, the option to purchase 1,050,000 shares of the Company’s common stock to be issued upon his exercise of such option. The option vests in three tranches according to the following schedule: 350,000 shares at October 19, 2018, 350,000 shares at October 19, 2019, and 350,000 at October 19, 2020. All three tranches expire on October 19, 2022. The Company has used the widely accepted Black Scholes Merton Option Pricing Model to measure the fair value of these securities, because of their plain vanilla nature of this option. The Company employed the followings assumptions to calculate the fair value of the option: expected forfeiture rate: 0%, risk free rate: 2.03%, expiration date: October 19, 2022, exercise price: $1.00, annualized volatility: 602.71%, dividend yield: 0%, and the Company’s closing stock price at year end. For the years ended December 31, 2018 and 2017, the Company recorded stock option compensation expense of $1,113,217 and $373,509. On August 22, 2018, Mr. Liu resigned from his position as Chief Executive Officer. The stock options were not fully vested since his resignation was before the anniversary of his employment period. Mr. Liu had forfeited all his stock options upon his resignation on August 30, 2018. For the periods ended March 31, 2022 and 2021, no stock option has been issued. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 17. LOSS PER SHARE The following table presents a reconciliation of basic and diluted earnings per share: For the three months ended 2022 2021 (Unaudited) (Unaudited) Numerator: Net loss $ (162,247 ) $ (11,003 ) Denominator: Weighted average number of common stock outstanding - basic and diluted 17,465,992 4,205,543 * Loss per share – Basic and diluted: $ (0.00929 ) $ (0.00262 ) * - The computation of basic and diluted share and EPS data was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on November 1, 2021. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF RISK | NOTE 18. CONCENTRATION OF RISK a) Major Customer The Company had certain customers who represented 10% or more of the Company’s total sales. For period ended March 31, 2022, the Company had one customer contributes for 10% or more of the Company’s total sales. b) Major Vendors and Accounts Payable The Company had certain vendors who represented 10% or more of the Company’s total cost of sales or expenses, or whose accounts payable balances individually represented 10% or more of the Company’s total accounts payable. For the period ended March 31, 2022, there was no concentration in any specific vendor. c) Credit Risk The Company maintained cash balances at several financial institutions located in the United States. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation up to $100,000. |
Significant Events
Significant Events | 3 Months Ended |
Mar. 31, 2022 | |
Significant Events [Abstract] | |
SIGNIFICANT EVENTS | NOTE 19. SIGNIFICANT EVENTS In December 2019, there was an outbreak of the novel coronavirus (COVID-19) in China that has since spread to many other regions of the world. The outbreak was subsequently labeled as a global pandemic by the World Health Organization in March 2020. It is anticipated that the COVID-19 outbreak may ultimately have a material adverse impact on the Company’s results of operations, financial position and cash flow in 2020 including, but not limited to: Transportation delays and cost increases, more extensive travel restrictions, closures or disruptions of businesses and facilities or social, economic, political or labor instability in the affected areas, may impact the Company’s customers’ operations. Customers may not be able to repay their loans on time due to lack of capital. The extent of the impact of COVID-19 on the Company’s operations and financial results depends on future developments and is highly uncertain due to the unknown duration and severity of the outbreak. The situation is changing rapidly and future impacts may materialize that are not yet known. The Company continues to monitor the situation closely and may implement further measures to provide additional financial flexibility and improve the Company’s cash position and liquidity. On January 13, 2022, the Company entered into an engagement agreement (the “Agreement”) with Joseph Stone Capital, LLC (the “FA”), pursuant to which the FA will act as an exclusive financial advisor for the Company to assist with certain matters, including up-listing, mergers and acquisitions, licensing or a joint venture or partnership, and global capital raising transactions by the Company (the “Services”) for a period of twelve (12) months, with an automatic extension for additional twelve (12) months with the mutual approval of the Company and FA. For the Services provided and to be provided by the FA, the Company shall issue the FA 1,000,000 shares of the Company’s common stock (the “Upfront Shares”) as upfront fees. Pursuant to the Agreement, the Company has granted the FA an anti-dilution right to maintain the FA’s equity ownership percentage of the Company of at least five percentage (5%) on a fully diluted basis for a period of eighteen (18) months from the date of the issuance of the Upfront Shares. The Company shall pay a certain percentage of the Aggregate Consideration as compensation to the FA for any sale, merger, acquisition, joint venture, strategic alliance, technology partnership, licensing agreement or other similar agreements undertaken by the Company due to the FA’s advice and facilitation. In addition, the FA shall receive a mutually agreed compensation for any form of debt financing raised with the assistance of the FA for the Company. Furthermore, for any successful equity raise by the Company as a result of the FA’s efforts, the FA shall receive (i) a Success Fee, payable in cash, equal to ten percent (10%) of the gross proceeds of the equity offering, plus (ii) warrants to purchase shares of Company’s commons stock (the “FA Warrants”), with the cashless exercise option, in the amount equal to ten percent (10%) of the gross proceeds of the equity offering, exercisable, in whole or in part, at any time within five (5) years from a public offering of the Company at a strike price equal to hundred-twenty percent (120%) of the public offering price of the Company’s common stock, or, if a public offering price is not available, then the market price of the common stock on the date when such offering is commenced. In accordance with the Agreement, the Company has granted the piggyback registration right to the shares underlying the FA Warrants and the Upfront Shares. The Company paid the FA $25,000 as advanced payment for any accountable expenses pursuant to the Agreement. The Company shall grant the FA a right to first refusal to act as the sole placement agent, sole book runner, manager, agent, or advisor for the Company’s next placement of debt or equity securities for a period of 18 months, subject to the terms of the Agreement. Additionally, the FA shall be entitled to compensation for any transaction undertaken by the Company with parties identified by the FA within eighteen (18) months from the termination or expiration of the Agreement. Any capitalized term used but not defined herein shall have the meaning given thereto in the Agreement. Before their entry into the Agreement, no material relationship existed between the Company and the FA. The offer and issuance of the Upfront Shares is and shall be made in reliance upon an exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder. On February 1, 2022, the Company filed a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of Amendment”) to change its corporate name from “Wave Sync Corp.” to “New York Holding Corp.” effective on February 4, 2022. The Certificate of Amendment and change of the corporate name do not and will not affect any right or obligation of the holders of the Company’s securities. As of this report, the Company has submitted the name-change application with FINRA, and the same is currently under review. On February 15, 2022, the Company entered into a Stock Sale and Purchase Agreement with Hudson Capital Inc. for buying all shares of Hudson Capital USA Inc. (“Hudson Capital USA”) for $1 and the transaction was closed at February 16, 2022. On March 15, 2022, Time Capital Management Inc., a New York corporation (“Time Capital”) and a wholly owned subsidiary of the Company, entered into a business consulting agreement (the “Agreement”) with Pengfei Xie, Zaixian Wang and Bingjiang Wang (collectively, the “Clients”), pursuant to which Time Capital, as a business consultant, shall provide investment and financial advice in relation to Clients’ funds of a total of one million dollars ($1,000,000.00) (the “Funds”) together with the income attributable to such Funds (the “Account”) for a period of one year from the date of the Agreement to March 15, 2023. Subject to the terms and conditions of the Agreement, Time Capital shall be entitled to a performance-based profit allocation of 8% of the Account’s net profits (the “Consulting Fees”) payable quarterly to Time Capital for the services it provides. Before their entry into the Agreement, no material relationship existed between the Company or Time Capital on one hand and the Clients on the other hand, except that 1) Zaixian Wang is a shareholder of the Company and 2) Zaixian Wang is the father of Warren Wang who in-turn is the control person of PX SPAC Capital Inc., one of the principal shareholders of the Company. On March 25, 2022, the Company entered into a private placement subscription agreement (the “Subscription Agreement”) in connection with its private sale (the “Offering”) of the Company’s 156,250 unregistered shares of common stock, par value $0.001, to Yingbin Guo (the “Investor”), at a purchase price of $3.20 per share. The Subscription Agreement contains customary representations, warranties and covenants by the parties regularly applied under industry standards. The Investor acknowledged and agreed that any resale of the shares issued in connection with this Offering is subject to resale restrictions pursuant to the Securities Exchange Act of 1934 and none of the shares purchased herein has been registered under the Securities Act of 1933, as amended. The Company shall issue shares of its common stock sold in this Offering in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act. The Company relied on this exemption from registration for this Offering based in part on the representations made by the Investor, including the representations with respect to the Investor’s status as accredited investors and his investment intent. On March 30, 2022, Hudson Capital USA, the subsidiary of the Company, entered into a Bought and Sold Note with Hudson Capital Inc. and executed an Instrument of Transfer to transfer its one (1) share, which represent all interest, in its wholly-owned Hong Kong subsidiary, Hongkong Internet Financial Services Limited for HK$1. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21. SUBSEQUENT EVENTS On May 17, 2022, the Company and WeWin DAO LLC ( “WeWin”), a Wyoming limited liability company, entered into a token purchase agreement (the “Purchase Agreement”), pursuant to which the Company shall purchase ten billion (10,000,000,000) WWC tokens (the “Sale Tokens”), which shall represent ten percent (10%) of the ownership interest and voting rights in WeWin, for a total consideration of ten million dollars ($10,000,000.00) (the “Purchase Price”) payable in two million and five hundred thousand (2,500,000) shares of common stock of the Company, valued at $4.00 per share (the “Consideration Shares”). Upon satisfaction of the terms and conditions of the Purchase Agreement, the parties of the Purchase Agreement expect to close the transactions set forth therein (the “Closing”) on or before June 27, 2022. Pursuant to the Purchase Agreement, the Company has agreed that it shall not, without the WeWin’s consent, offer, sell, transfer, assign, pledge or otherwise dispose of any of the Sale Tokens until the earlier of (i) 365 days from the date of this Agreement and (ii) the listing of WWC tokens on a cryptocurrency exchange platform. Similarly, in accordance with the Purchase Agreement, WeWin has agreed that it shall not, without the Company’s consent, sell, assign, transfer, pledge, contract to sell, establish an open “put equivalent position,” or otherwise dispose of, or announce the offering of, or request the Company to file a registration statement under Securities Act of 1933 in respect of, any Consideration Shares until the earlier of (i) 365 days from the date of this Agreement and (ii) the listing of Company’s shares on a national stock exchange. Except for the above mentioned matters, no other material events are required to be adjusted or disclosed as of the report date of the consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Method of Accounting | A. Method of Accounting The Company maintains its general ledger and journals with the accrual method of accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements. |
Basis of presentation | B. Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | C. Principles of Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries for which the Company is the primary beneficiary. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries. As of March 31, 2022, the detailed identities of the consolidating subsidiaries were as follows: Name of Company Place of incorporation Attributable Registered New York Link Capital Inc. (“NY Link”) New York 100 % $ 100 New York Tech Capital Inc. (“NY Tech”) New York 100 % 100 Center Florence, Inc. Delaware 100 % 1 Center St. Louis LLC (“St. Louis”) Delaware 100 % 1,000 Royal Park, LLC (“Royal Park”) South Carolina 100 % 1,000 Florence Development, LLC. (“Florence”) Delaware 100 % 1,000 Time Capital Inc. (“Time Capital”) New York 100 % 100 Time Capital Management Inc. (“Time Capital Management”) New York 100 % 100 Hudson Capital USA Inc. (“NY Link”) New York 100 % 100 Hongkong Internet Financial Services Limited (“HKIFS”) Hong Kong 100 % 0.14 As of December 31, 2021, the detailed identities of the consolidating subsidiaries were as follows: Name of Company Place of incorporation Attributable Registered New York Link Capital Inc. (“NY Link”) New York 100 % $ 100 New York Tech Capital Inc. (“NY Tech”) New York 100 % 100 Center Florence, Inc. Delaware 100 % 1 Center St. Louis LLC (“St. Louis”) Delaware 100 % 1,000 Royal Park, LLC (“Royal Park”) South Carolina 100 % 1,000 Florence Development, LLC. (“Florence”) Delaware 100 % 1,000 |
Unaudited Interim Financial Information | D. Unaudited Interim Financial Information These unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The consolidated balance sheets and certain comparative information as of December 31, 2021 are derived from the audited consolidated financial statements and related notes for the year ended December 31, 2021 (“2021 Annual Financial Statements”), included in the Company’s 2021 Annual Report on Form 10-K. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2021 Annual Financial Statements. |
Use of estimates | E. Use of estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are used for, but not limited to, the accounting for certain items such as allowance for doubtful accounts, depreciation and amortization, impairment, inventory allowance, taxes and contingencies. |
Contingencies | F. 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’s management 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’s management 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. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. |
Cash and cash equivalents | G. Cash and cash equivalents The Company classifies the following instruments as cash and cash equivalents: cash on hand, unrestricted bank deposits, and all highly liquid investments purchased with original maturities of three months or less. |
Accounts receivable | H. Accounts receivable Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. |
Other receivables | I. Other receivables Other receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An allowance for doubtful accounts is made when recovery of the full amount is doubtful. |
Property, plant and equipment | J. Property, plant and equipment Lands are carried at cost and no depreciation is provided. Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method with a salvage value from 0% - 10%. Estimated useful lives of the plant and equipment are as follows: Building and improvement 15-40 years Furniture and equipment 5-28 years Digital mining machine 5 years Office equipment 3 years Office furniture 5 years Motor vehicle 5 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. |
Intangible Assets | K. Intangible Assets Intangible assets, comprising digital assets, accounting software and big data platform, which are separable from the property and equipment, are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the assets. Digital assets Digital assets (including Bitcoin and USDT) are included in current assets in the accompanying consolidated balance sheets. Digital assets purchased are recorded at cost and digital assets awarded to the Company through its mining activities are accounted for in connection with the Company’s revenue recognition policy disclosed below. Digital assets held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For the periods ended March 31, 2022 and 2021, the Company has recognized impairment loss of $0 and $0 of its digital assets, respectively. Purchases of digital assets by the Company, if any, will be included within investing activities in the accompanying consolidated statements of cash flows, while digital assets awarded to the Company through its mining activities are included within operating activities on the accompanying consolidated statements of cash flows. The sales of digital assets are included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such sales are included in “realized gain (loss) on exchange of digital assets” in the consolidated statements of operations and comprehensive income (loss). The Company accounts for its gains or losses in accordance with the first-in first-out method of accounting. Separable Intangible Asset - Customer-related intangible assets Customer-related intangible assets arising from the acquisition of subsidiary which has been separated from goodwill by complying with ASC 805-20-55 which meets the contractual-legal criterion for recognition separately from goodwill even though the Company cannot sell or otherwise transfer these lease contracts. Customer-related intangible assets are accounted for as intangible assets with useful lives of five years. It would be amortized for the useful lives on monthly basis. The Company tests intangible assets for impairment at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. L. Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interests of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. M. Goodwill Goodwill is the excess of the consideration transferred over the fair value of the acquired assets and assumed liabilities in a business combination. The Company tests goodwill for impairment at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. |
Business combinations | L. Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interests of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. |
Goodwill | M. Goodwill Goodwill is the excess of the consideration transferred over the fair value of the acquired assets and assumed liabilities in a business combination. The Company tests goodwill for impairment at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. |
Impairment of Long-lived Assets | N. Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. For the periods ended March 31, 2022 and 2021, the Company did not recognize any impairment loss of its long-lived assets. |
Long term investment | O. Long term investment The Company’s long-term investments include equity securities without readily determinable fair values and available-for-sale investments. Equity securities without readily determinable fair values As of March 31, 2022 and December 31, 2021, the Company’s investment in two privately held companies over which the Company neither has control nor significant influence through investment in common stock. Equity securities not accounted for using the equity method are carried at fair value with unrealized gains and losses recorded in the consolidated income statements, according to ASC 321, Investments - Equity Securities. The Company elected to record the equity investments in privately held companies using the measurement alternative at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly transactions for identical or similar investments of the same issuer. Equity investments in privately held companies accounted for using the measurement alternative are subject to periodic impairment reviews. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the fair value of these equity securities, including consideration of the impact of the COVID-19 pandemic. In computing realized gains and losses on equity securities, the Company determines cost based on amounts paid using the average cost method. Dividend income is recognized when the right to receive the payment is established. Available-for-sale investments For investments in investees’ shares which are determined to be debt securities, the Group accounts for them as available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income as a component of shareholders’ equity. Declines in the fair value of individual available-for-sale investments below their amortized cost due to credit-related factors are recognized as an allowance for credit losses, whereas if declines in the fair value is not due to credit-related factors, the loss is recorded in other comprehensive income / (loss). |
Accounting for the Impairment of Long-lived assets | P. Accounting for the Impairment of Long-lived assets The long-lived assets held by the Company are reviewed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 360-10-35, “Accounting for the Impairment or Disposal of Long-Lived Assets,” for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Impairment is present if carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company believes no impairment has occurred to its assets during 2021 and 2020. |
Income taxes | Q. Income taxes The Company uses the accrual method of accounting to determine income taxes for the year. The Company has implemented FASB ASC 740 Accounting for Income Taxes. Income tax liabilities computed according to the United States, People’s Republic of China (PRC), and Hong Kong tax laws provide for the tax effects of transactions reported in the financial statements and consists of taxes currently due, plus deferred taxes, related primarily to differences arising from the recognition of expenses related to the depreciation of plant and equipment, amortization of intangible assets, and provisions for doubtful accounts between financial and tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses that are available to offset future income taxes. A valuation allowance is recognized for deferred tax assets if it is more likely than not, that the deferred tax assets will either expire before the Company is able to realize that tax benefit, or that future realization is uncertain. |
Stock-based compensation | R. Stock-based compensation The Company has elected to use the Black-Scholes-Merton (“BSM”) pricing model to determine the fair value of stock options on the dates of grant. Also, the Company recognizes stock-based compensation using the straight-line method over the requisite service period. The Company values stock awards using the market price on or around the date the shares were awarded and includes the amount of compensation as a period compensation expense over the requisite service period. For the periods ended March 31, 2022 and 2021, $0 and $0 stock-based compensation was recognized. |
Foreign currency translation | S. Foreign currency translation The accompanying financial statements are presented in United States dollars (USD). For the period ended March 31, 2022, the functional currency of the Company is the USD. For the period ended March 31, 2021, the functional currency of the Company is the USD and Renminbi (RMB). The financial statements are translated into USD from RMB at period-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. Exchange rates March 31, December 31, Year-end/period-end RMB : US$ exchange rate 6.5713 6.4515 Average annual/period RMB : US$ exchange rate 6.4844 6.3757 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollar at the rates used in translation. |
Revenue recognition | T. Revenue recognition The Company recognizes services revenue when the following criteria have been met: 1) it has agreed and entered into a contract for service with it customers which the Company identifies the contract and determines the transactions price with customers, 2) the contract has set forth a fixed fee for the services to be rendered which the Company has determined the transactions price and the allocation of such price to performance obligations with the customers, 3) the Company has fully rendered service to its customers, and there are no additional obligations that exist that under the terms of the contract that the Company has not fulfilled that the Company recognizes revenue when the performance obligation is satisfied, and 4) the Company has either received payment, or reasonably expects payment from the customer in accordance to the payment terms set forth in the contract. Cryptocurrency When the cryptocurrency is sold in the exchange, which time revenue is recognized. There is no significant financing component in these transactions. Fair value of the cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial position and results from operations. Rental income Rental income from letting the Company’s of investment properties is recognized on a straight-line basis over the lease term. Clubhouse services Clubhouse income is recognized when services are rendered. |
Cost of revenue | U. Cost of revenue Cryptocurrency The cost of revenue of cryptocurrency is the corresponding amount of intangible assets. Clubhouse services The cost of revenue of clubhouse services is mainly the labour costs and cost of food and beverage. |
Earnings per share | V. Earnings per share Basic earnings per share is computed on the basis of the weighted average number of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of common stock and common stock equivalents outstanding. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. |
Comprehensive loss | W. Comprehensive loss Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company presents components of comprehensive income with equal prominence to other financial statements. The Company’s current component of other comprehensive income is the foreign currency translation adjustment. |
Subsequent events | X. Subsequent events The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. |
Fair Value of Financial Instruments | Y. Fair Value of Financial Instruments ASC 825, Financial Instruments, requires that the Company discloses estimated fair values of financial instruments. The carrying amounts reported in the balance sheets for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value. The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. For certain financial instruments, including cash and cash equivalents, loan receivables and short-term bank loans, the carrying amounts approximate fair value due to their relatively short maturities. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10 As of March 31, 2022: Quoted in Active (Level 1) Significant (Level 3) Significant (Level 3) Total Financial assets: Cash $ 555,717 $ - $ - $ 555,717 Total financial assets $ 555,717 $ - $ - $ 555,717 As of December 31, 2021: Quoted in Active (Level 1) Significant (Level 3) Significant (Level 3) Total Financial assets: Cash $ 2,877,456 $ - $ - $ 2,877,456 Total financial assets $ 2,877,456 $ - $ - $ 2,877,456 |
Recently issued accounting standards | Z. Recently issued accounting standards In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The standard did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. ASU 2019-12 will be effective for the Company in the first quarter of 2021. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations, cash flows or disclosures. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4 and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6 and Issue 7 were effective for the Company beginning on January 1, 2020. The Company does not anticipate that the adoption of the new standard will have a material effect on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have any impact on the Company’s consolidated financial statement presentation or disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This update is effective for annual periods beginning after December 15, 2021, and early application is permitted. This guidance should be applied either prospectively to all transactions that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or retrospectively to those transactions. The Company does not expect the impact of this guidance to have a material impact on the Company’s consolidated financial statements. Other than the above, management does not believe that any of the recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of consolidating subsidiaries | Name of Company Place of incorporation Attributable Registered New York Link Capital Inc. (“NY Link”) New York 100 % $ 100 New York Tech Capital Inc. (“NY Tech”) New York 100 % 100 Center Florence, Inc. Delaware 100 % 1 Center St. Louis LLC (“St. Louis”) Delaware 100 % 1,000 Royal Park, LLC (“Royal Park”) South Carolina 100 % 1,000 Florence Development, LLC. (“Florence”) Delaware 100 % 1,000 Time Capital Inc. (“Time Capital”) New York 100 % 100 Time Capital Management Inc. (“Time Capital Management”) New York 100 % 100 Hudson Capital USA Inc. (“NY Link”) New York 100 % 100 Hongkong Internet Financial Services Limited (“HKIFS”) Hong Kong 100 % 0.14 Name of Company Place of incorporation Attributable Registered New York Link Capital Inc. (“NY Link”) New York 100 % $ 100 New York Tech Capital Inc. (“NY Tech”) New York 100 % 100 Center Florence, Inc. Delaware 100 % 1 Center St. Louis LLC (“St. Louis”) Delaware 100 % 1,000 Royal Park, LLC (“Royal Park”) South Carolina 100 % 1,000 Florence Development, LLC. (“Florence”) Delaware 100 % 1,000 |
Schedule of estimated useful lives of plant and equipment | Building and improvement 15-40 years Furniture and equipment 5-28 years Digital mining machine 5 years Office equipment 3 years Office furniture 5 years Motor vehicle 5 years |
Schedule of assets and liabilities and average exchange rates as to revenues and expenses | Exchange rates March 31, December 31, Year-end/period-end RMB : US$ exchange rate 6.5713 6.4515 Average annual/period RMB : US$ exchange rate 6.4844 6.3757 |
Schedule of financial assets and liabilities at fair value | Quoted in Active (Level 1) Significant (Level 3) Significant (Level 3) Total Financial assets: Cash $ 555,717 $ - $ - $ 555,717 Total financial assets $ 555,717 $ - $ - $ 555,717 Quoted in Active (Level 1) Significant (Level 3) Significant (Level 3) Total Financial assets: Cash $ 2,877,456 $ - $ - $ 2,877,456 Total financial assets $ 2,877,456 $ - $ - $ 2,877,456 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of purchase price acquisition | USD (Audited) Cash and cash equivalents $ 48,850 Net assets acquired, excluding cash and cash equivalents, related parties balances and property, plant and equipment, net (1,882,537 ) Property, plant and equipment, net 19,994,734 Separable Intangible Assets - Customer-related intangible assets 175,536 Goodwill 63,417 Total purchase consideration $ 18,400,000 USD (Unaudited) Cash and cash equivalents $ 21,478 Net assets acquired, excluding cash and cash equivalents, related parties balances and property, plant and equipment, net (1,416 ) Property, plant and equipment, net 0 Separable Intangible Liabilities – Lease commitment-related intangible liabilities (48,101 ) Goodwill 28,139 Total purchase consideration $ 100 USD (Unaudited) Cash and cash equivalents $ 0 Net assets acquired, excluding cash and cash equivalents, and related parties balances 0 Goodwill 0.14 Total purchase consideration $ 0.14 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | As of March 31, As of (Unaudited) (Audited) Cash on hand $ - $ 6,090 Cash in banks 555,717 2,871,366 Total cash $ 555,717 $ 2,877,456 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of accounts receivable | As of March 31, As of December 31, (Unaudited) (Audited) Accounts receivable $ 77,158 $ 64,089 Less: allowance - - Less: impairment - - Accounts receivable, net $ 77,158 $ 64,089 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | As of March 31, As of December 31, (Unaudited) (Audited) Consumable store $ 1,996 $ 2,673 Less: allowance - - Less: impairment - - Total $ 1,996 $ 2,673 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property plant and equipment | As of March31, As of December 31, (Unaudited) (Audited) Land $ 18,148,238 $ 18,148,238 Building and improvement 2,614,790 2,614,790 Furniture and equipment 285,694 261,397 Digital mining equipment 3,218,350 1,300,000 Motor vehicle 100,000 100,000 Total property and equipment 24,367,072 22,424,425 Less: accumulated depreciation (1,392,817 ) (1,284,233 ) Less: impairment - - Property, plant and equipment, net $ 22,974,255 $ 21,140,192 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | As of March 31, 2022 (Unaudited) Items Gross Accumulated Impairment Net $ $ $ $ Intangible assets not subject to amortization: Goodwill (Note 9) 91,556 - - 91,556 Digital assets - Bitcoin 9,230 - - 9,230 Digital assets - USDT 67,035 - - 67,035 Intangible assets subject to amortization: --5-year life: Customer-related intangible assets 175,536 (11,702 ) - 163,834 Total 343,357 (11,702 ) - 331,655 As of December 31, 2021 (Audited) Items Gross Accumulated Impairment Net $ $ $ $ Intangible assets not subject to amortization: Goodwill (Note 9) 63,417 - - 63,417 Digital assets 30,670 - (13,589 ) 17,081 Intangible assets subject to amortization: --5-year life: Customer-related intangible assets 175,536 (2,923 ) - 172,613 Total 269,623 (2,923 ) (13,589 ) 253,111 |
Schedule of cryptocurrency mining and customer-related intangible assets | As of March 31, As of December 31, (Unaudited) (Audited) Digital assets Bitcoin - Digital mining costs $ 9,230 $ 30,670 USDT 67,035 - Less: accumulated amortization - - Less: impairment - (13,589 ) $ 76,265 $ 17,081 As of March 31, As of December 31, (Unaudited) (Audited) Separable Intangible Assets Customer-related intangible assets $ 175,536 $ 175,536 Less: accumulated amortization (11,702 ) (2,923 ) Less: impairment - - $ 163,834 $ 172,613 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill | As of As of (Unaudited) (Audited) Beginning balance $ 63,417 $ - Addition (Note 3) 28,139 63,417 Less: accumulated impairment loss - - Less: disposal and write off - - $ 91,556 $ 63,417 |
Long Term Investment (Tables)
Long Term Investment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Long Term Investment [Abstract] | |
Schedule of long-term investment | As of March 31, As of December 31, (Unaudited) (Audited) Equity securities without readily determinable fair values Archax Holdings Ltd. $ 500,000 $ 500,000 Montis Digital Limited 250,000 250,000 750,000 750,000 Available-for-sale investments Archax Holdings Ltd.- Principal of Convertible note loan 106,289 106,289 Archax Holdings Ltd.- Interest on Convertible note loan 2,819 722 109,108 107,011 Total cost of long term investment 859,108 857,011 Less: impairment - - $ 859,108 $ 857,011 |
Short-Term Loans (Tables)
Short-Term Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Short-Term Loans [Abstract] | |
Schedule of Principal of short-term loans | As of March 31, As of December 31, (Unaudited) (Audited) 7.00% bank loan, originally due July 15, 2020, but extended to December 31, 2022 $ 160,531 $ 166,777 - - - - Total $ 160,531 $ 166,777 |
Long-Term Loan (Tables)
Long-Term Loan (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Short-Term Loans [Abstract] | |
Schedule of principal of long-term loans | As of March 31, As of December 31, (Unaudited) (Audited) 6.00% bank loan, due April 10, 2024 $ 1,124,596 $ 1,133,959 3.75% U.S federal government SBA loan, due June 27, 2030 149,900 149,900 3.75% U.S. federal government SBA loan, due June 27, 2030 150,000 150,000 Total $ 1,424,496 $ 1,433,859 |
Note Payables (Tables)
Note Payables (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Short-Term Loans [Abstract] | |
Schedule of note payables | As of March 31, As of December 31, (Unaudited) (Audited) PX Global Advisors, LLC Principal $ 2,000,000 $ 2,000,000 Interest 60,274 10,959 Total $ 2,060,274 $ 2,010,959 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party payables | As of March 31, As of December 31, (Unaudited) (Audited) PX SPAC Capital Inc. Principal $ 36,916 $ 36,916 Interest 768 586 Total $ 37,684 $ 37,502 |
Taxation (Tables)
Taxation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Three months Three months (Unaudited) (Unaudited) Current $ - $ - Deferred - - Total $ - $ - |
Schedule of taxes recoverable payable | As of As of (Unaudited) (Audited) Income tax recoverable - current $ - $ - Income tax payable – noncurrent $ - $ - |
Schedule of reconciliation income taxes | Three months Three months (Unaudited) (Unaudited) Current: Federal $ - $ - State - - Hong Kong - - - - Deferred: Federal - - State - - Total provision (benefit) for income taxes $ - $ - |
Schedule of taxes payable | Three months Three months (Unaudited) (Unaudited) Tax at federal statutory rate $ - $ - Foreign rate differential - - Others - - Valuation allowance - - Total provision (benefit) for income taxes $ - $ - |
Schedule of deferred tax assets and liabilities | As of As of (Unaudited) (Audited) Non-Current Deferred Tax Assets: NOL (Federal) $ 294,977 $ 294,977 NOL (NY) - - NOL (SC) 42,874 42,874 Net Non-Current Deferred Tax Assets before Valuation Allowance 337,851 337,851 Less: Valuation Allowance (337,851 ) (337,851 ) Non-Current Deferred Tax Assets, Net: - - Total Deferred Assets, Net: $ - $ - |
Schedule of taxes payable | As of As of December 31, 2021 (Unaudited) (Audited) Corporate income tax payable $ - $ - Franchise tax payable 1,240 1,200 Other surtaxes payable - - Total $ 1,240 $ 1,200 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted earnings per share | For the three months ended 2022 2021 (Unaudited) (Unaudited) Numerator: Net loss $ (162,247 ) $ (11,003 ) Denominator: Weighted average number of common stock outstanding - basic and diluted 17,465,992 4,205,543 * Loss per share – Basic and diluted: $ (0.00929 ) $ (0.00262 ) * - The computation of basic and diluted share and EPS data was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on November 1, 2021. |
Organization and Principal Ac_2
Organization and Principal Activities (Details) | 1 Months Ended | 3 Months Ended | |||||||||||||||||
Jul. 14, 2015 USD ($) | Jul. 14, 2015 CNY (¥) | Dec. 06, 2010 $ / shares shares | Feb. 15, 2022 USD ($) | Nov. 18, 2021 | Oct. 26, 2021 | Oct. 19, 2015 | Jul. 24, 2015 USD ($) | Jul. 24, 2015 CNY (¥) | Jan. 28, 2015 USD ($) | Jan. 28, 2015 CNY (¥) | Oct. 28, 2010 | Mar. 31, 2022 USD ($) shares | Jan. 13, 2022 | Dec. 31, 2021 shares | Dec. 30, 2021 $ / shares | Oct. 18, 2021 | Apr. 16, 2021 shares | Mar. 16, 2015 CNY (¥) | |
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 5% | 100% | |||||||||||||||||
Business combination, consideration transferred description | (i) the Company has effectuated a reverse split of all of the issued and outstanding Common Stock as of the date of the issuance of the note (the “Reverse Split”) and (ii) the average closing price of the common stock for 3 business days within any period of 10 consecutive business days exceeds $1.00 per share (the “Conversion Conditions”). Upon conversion of the note, the existing shareholders of the Registrant will own an aggregate of 24.7% of the post-acquisition entity. | ||||||||||||||||||
Service fee percentage | 12% | ||||||||||||||||||
Initial service term | 3 years | ||||||||||||||||||
Common stock shares issued (in Shares) | 17,465,992 | 17,465,992 | |||||||||||||||||
Purchase exchange agreement description | the Company entered into a Share Purchase/Exchange Agreement (the “Agreement”) with Center Florence Holding LLC (“Center Florence Holding”) and Center Florence, Inc. (“Center Florence”), a wholly-owned subsidiary of Center Florence Holding. Under the Agreement, Center Florence Holding sold and transferred one hundred percent (100%) of its shares in Center Florence to the Company in exchange for four million six hundred thousand (4,600,000) shares (the “Exchange Shares”) of the Company’s common stock (the “Common Stock”), par value $0.001 per share, at an agreed price of $4.00 per share of the Common Stock for a total valuation of $18,400,000 of the Company. On December 1, 2021, the share exchange transaction was closed and the Center Florence became wholly-owned subsidiary of the Company. | ||||||||||||||||||
Intangible assets (in Dollars) | $ | $ 175,536 | ||||||||||||||||||
Goodwil (in Dollars) | $ | $ 63,417 | ||||||||||||||||||
Egoos Mobile Technology Company Limited [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Note converted into share (in Shares) | 15,000,000 | ||||||||||||||||||
Ding Neng Holdings [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 100% | ||||||||||||||||||
Issuance of common stock for acquisition (in Shares) | 26,162,505 | ||||||||||||||||||
Price per share (in Dollars per share) | $ / shares | $ 0.001 | ||||||||||||||||||
Litigation settlement fee | $ 1,610.5 | ¥ 10,000 | |||||||||||||||||
Shenzhen Qianhai Exce-card Technology Co., Ltd. [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 1,629,062 | ¥ 10,000,000 | |||||||||||||||||
Xiang Zuyue [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 40% | 40% | |||||||||||||||||
Business combination, consideration transferred | $ 651,625 | ¥ 4,000,000 | |||||||||||||||||
Guangzhou Rongsheng Information Technology Co., Ltd. [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 1,629,062 | ¥ 10,000,000 | |||||||||||||||||
Authorized capital (in Yuan Renminbi) | ¥ | ¥ 1,000,000 | ||||||||||||||||||
Egoos Mobile Technology Company Limited [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 100% | ||||||||||||||||||
Note converted into share (in Shares) | 15,000,000 | ||||||||||||||||||
Aggregate price per share (in Dollars per share) | $ / shares | $ 1 | ||||||||||||||||||
New York Link Capital Inc [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 100% | ||||||||||||||||||
Center Florence Holding LLC [Member] | Common Stock [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Common stock shares issued (in Shares) | (100) | ||||||||||||||||||
Hudson Capital USA Inc. (“NY Link”) [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Sale of stock and purchase agreement (in Dollars) | $ | $ 1 | ||||||||||||||||||
Egoos Mobile Technology Company Limited [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Ownership percenatge | 100% | ||||||||||||||||||
Shenzhen Co., Ltd [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Ownership percenatge | 100% | ||||||||||||||||||
Shenzhen Qianhai Exce-card Technology Co., Ltd. [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Ownership percenatge | 100% | ||||||||||||||||||
Guangzhou Rongsheng Information Technology Co., Ltd. [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Ownership percenatge | 100% | ||||||||||||||||||
Subsidiary of Common Parent [Member] | Ding Neng Holdings [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Entity agreements, description | On October 28, 2010, WFOE and Ding Neng Bio-tech entered into a set of variable interest entity agreements that included: (1) a Consulting Service Agreement with Ding Neng Bio-tech, which entitled WFOE to receive substantially all of the economic benefits of Ding Neng Bio-tech in consideration for services provided by WFOE to DingNeng Bio-tech, (2) an Option Agreement with Xinfeng Nie, Sanfu Huang, and Shunlong Hu (the shareholders of Ding Neng Bio-tech) allowing the WFOE to acquire all the shares of Ding Neng Bio-tech as permitted by PRC laws, (3) a Voting Rights Proxy Agreement that provides WFOE with the all voting rights of the Ding Neng Bio-tech shareholders, and (4) an Equity Pledge Agreement that pledges the shares in Ding Neng Bio-tech to WFOE (VIE Agreements). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Percentage of consolidated financial statements | 100% | |
Impairment loss of digital assets | $ 0 | $ 0 |
Intangible assets with useful lives | 5 years | |
Stock based compensation | $ 0 | $ 0 |
Minimum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Straight-line method salvage value | 0% | |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Straight-line method salvage value | 10% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of consolidating subsidiaries - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
New York Link Capital Inc. (“NY Link”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | New York Link Capital Inc. (“NY Link”) | New York Link Capital Inc. (“NY Link”) |
Place of incorporation | New York | New York |
Attributable equity interest % | 100% | 100% |
Registered capital | $ 100 | $ 100 |
New York Tech Capital Inc. (“NY Tech”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | New York Tech Capital Inc. (“NY Tech”) | New York Tech Capital Inc. (“NY Tech”) |
Place of incorporation | New York | New York |
Attributable equity interest % | 100% | 100% |
Registered capital | $ 100 | $ 100 |
Center Florence, Inc. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | Center Florence, Inc. | Center Florence, Inc. |
Place of incorporation | Delaware | Delaware |
Attributable equity interest % | 100% | 100% |
Registered capital | $ 1 | $ 1 |
Center St. Louis LLC (“St. Louis”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | Center St. Louis LLC (“St. Louis”) | Center St. Louis LLC (“St. Louis”) |
Place of incorporation | Delaware | Delaware |
Attributable equity interest % | 100% | 100% |
Registered capital | $ 1,000 | $ 1,000 |
Royal Park, LLC (“Royal Park”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | Royal Park, LLC (“Royal Park”) | Royal Park, LLC (“Royal Park”) |
Place of incorporation | South Carolina | South Carolina |
Attributable equity interest % | 100% | 100% |
Registered capital | $ 1,000 | $ 1,000 |
Florence Development, LLC. (“Florence”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | Florence Development, LLC. (“Florence”) | Florence Development, LLC. (“Florence”) |
Place of incorporation | Delaware | Delaware |
Attributable equity interest % | 100% | 100% |
Registered capital | $ 1,000 | $ 1,000 |
Time Capital Inc. (“Time Capital”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | Time Capital Inc. (“Time Capital”) | |
Place of incorporation | New York | |
Attributable equity interest % | 100% | |
Registered capital | $ 100 | |
Time Capital Management Inc. (“Time Capital Management”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | Time Capital Management Inc. (“Time Capital Management”) | |
Place of incorporation | New York | |
Attributable equity interest % | 100% | |
Registered capital | $ 100 | |
Hudson Capital USA Inc. (“NY Link”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | Hudson Capital USA Inc. (“NY Link”) | |
Place of incorporation | New York | |
Attributable equity interest % | 100% | |
Registered capital | $ 100 | |
Hongkong Internet Financial Services Limited (“HKIFS”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Name of Company | Hongkong Internet Financial Services Limited (“HKIFS”) | |
Place of incorporation | Hong Kong | |
Attributable equity interest % | 100% | |
Registered capital | $ 0.14 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of plant and equipment | 3 Months Ended |
Mar. 31, 2022 | |
Building and improvement [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives of plant and equipment | 15 years |
Building and improvement [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives of plant and equipment | 40 years |
Furniture and equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives of plant and equipment | 5 years |
Furniture and equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives of plant and equipment | 28 years |
Digital mining machine [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives of plant and equipment | 5 years |
Office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives of plant and equipment | 3 years |
Office furniture [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives of plant and equipment | 5 years |
Motor vehicle [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives of plant and equipment | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of assets and liabilities and average exchange rates as to revenues and expenses | Dec. 31, 2021 | Mar. 31, 2021 |
Year-end/period-end RMB : US$ exchange rate [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency translation, exchange rates | 6.4515 | 6.5713 |
Average annual/period RMB : US$ exchange rate [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency translation, exchange rates | 6.3757 | 6.4844 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of financial assets and liabilities at fair value - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Summary of Significant Accounting Policies (Details) - Schedule of financial assets and liabilities at fair value [Line Items] | ||
Cash | $ 555,717 | $ 2,877,456 |
Total financial assets | 555,717 | 2,877,456 |
Quoted in Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of financial assets and liabilities at fair value [Line Items] | ||
Cash | 555,717 | 2,877,456 |
Total financial assets | 555,717 | 2,877,456 |
Significant Other Observable Inputs (Level 3) [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of financial assets and liabilities at fair value [Line Items] | ||
Cash | ||
Total financial assets | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of financial assets and liabilities at fair value [Line Items] | ||
Cash | ||
Total financial assets |
Business Acquisition (Details)
Business Acquisition (Details) | 1 Months Ended | |||
Mar. 30, 2022 HKD ($) shares | Feb. 15, 2022 USD ($) | Nov. 18, 2021 USD ($) $ / shares shares | Feb. 16, 2022 $ / shares | |
Business Acquisition (Details) [Line Items] | ||||
Par value | $ / shares | $ 0.001 | $ 1 | ||
Transaction closed amount | $ 1 | |||
Series of Individually Immaterial Business Acquisitions [Member] | ||||
Business Acquisition (Details) [Line Items] | ||||
Agreement percentage | 100% | |||
Exchange shares | shares | 4,600,000 | |||
Agreed price per share | $ / shares | $ 4 | |||
Total valuation | $ 18,400,000 | |||
Acquisition of Hongkong Internet Financial Services Limited [Member] | ||||
Business Acquisition (Details) [Line Items] | ||||
Exchange shares | shares | 1 | |||
Represent interest | $ 1 |
Business Acquisition (Details)
Business Acquisition (Details) - Schedule of purchase price acquisition - USD ($) | Mar. 30, 2022 | Feb. 16, 2022 | Dec. 01, 2021 |
Schedule of purchase price acquisition [Abstract] | |||
Cash and cash equivalents | $ 0 | $ 21,478 | $ 48,850 |
Net assets acquired, excluding cash and cash equivalents, related parties balances and property, plant and equipment, net | 0 | (1,416) | (1,882,537) |
Property, plant and equipment, net | 0 | 19,994,734 | |
Separable Intangible Liabilities – Lease commitment-related intangible liabilities | (48,101) | ||
Separable Intangible Assets - Customer-related intangible assets | 175,536 | ||
Goodwill | 0.14 | 28,139 | 63,417 |
Total purchase consideration | $ 0.14 | $ 100 | $ 18,400,000 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Schedule of cash and cash equivalents - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of cash and cash equivalents [Abstract] | ||
Cash on hand | $ 6,090 | |
Cash in banks | 555,717 | 2,871,366 |
Total cash | $ 555,717 | $ 2,877,456 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2022 | |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable | $ 64,089 | $ 77,158 |
Less: allowance | ||
Less: impairment | ||
Accounts receivable, net | $ 64,089 | $ 77,158 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of inventory - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of inventory [Abstract] | ||
Consumable store | $ 1,996 | $ 2,673 |
Less: allowance | ||
Less: impairment | ||
Total | $ 1,996 | $ 2,673 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 108,584 | $ 0 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property plant and equipment - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 24,367,072 | $ 22,424,425 |
Less: accumulated depreciation | (1,392,817) | (1,284,233) |
Less: impairment | ||
Property, plant and equipment, net | 22,974,255 | 21,140,192 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,148,238 | 18,148,238 |
Building and improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,614,790 | 2,614,790 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 285,694 | 261,397 |
Digital mining equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,218,350 | 1,300,000 |
Motor vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 100,000 | $ 100,000 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Oct. 26, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Contract term | 3 years | ||
Impairment on intangible assets | $ 0 | $ 0 | |
Amortization on customer-related intangible assets | $ 8,779 | $ 0 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Intangible assets not subject to amortization: | ||
Gross Carrying Value | $ 343,357 | $ 269,623 |
Accumulated Amortization | (11,702) | (2,923) |
Impairment | (13,589) | |
Net Carrying Value | 331,655 | 253,111 |
Goodwill [Member] | ||
Intangible assets not subject to amortization: | ||
Gross Carrying Value | 91,556 | 63,417 |
Accumulated Amortization | ||
Impairment | ||
Net Carrying Value | 91,556 | 63,417 |
Digital assets - Bitcoin [Membe] | ||
Intangible assets not subject to amortization: | ||
Gross Carrying Value | 9,230 | |
Accumulated Amortization | ||
Impairment | ||
Net Carrying Value | 9,230 | |
Digital assets - USDT [Member] | ||
Intangible assets not subject to amortization: | ||
Gross Carrying Value | 67,035 | |
Accumulated Amortization | ||
Impairment | ||
Net Carrying Value | 67,035 | |
Customer-related intangible assets [Member] | ||
Intangible assets not subject to amortization: | ||
Gross Carrying Value | 175,536 | 175,536 |
Accumulated Amortization | (11,702) | (2,923) |
Impairment | ||
Net Carrying Value | $ 163,834 | 172,613 |
Digital assets [Member] | ||
Intangible assets not subject to amortization: | ||
Gross Carrying Value | 30,670 | |
Accumulated Amortization | ||
Impairment | (13,589) | |
Net Carrying Value | $ 17,081 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of cryptocurrency mining and customer-related intangible assets - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2021 | |
Digital Assets [Member] | ||
Digital assets | ||
Bitcoin - Digital mining costs | $ 9,230 | $ 30,670 |
USDT | 67,035 | |
Less: accumulated amortization | ||
Less: impairment | (13,589) | |
Total | 76,265 | 17,081 |
Separable Intangible Assets [Member] | ||
Digital assets | ||
Customer-related intangible assets | 175,536 | 175,536 |
Less: accumulated amortization | (11,702) | (2,923) |
Less: impairment | ||
Total | $ 163,834 | $ 172,613 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment losses | $ 0 | $ 0 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of carrying amount of goodwill - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of carrying amount of goodwill [Abstract] | ||
Beginning balance | $ 63,417 | |
Addition | 28,139 | 63,417 |
Less: accumulated impairment loss | ||
Less: disposal and write off | ||
Total | $ 91,556 | $ 63,417 |
Long Term Investment (Details)
Long Term Investment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Nov. 16, 2021 | Jun. 04, 2021 | |
Long Term Investment (Details) [Line Items] | ||||
Fixed rate of unsecured convertible loan | 8% | |||
Per share of integral multiples (in Dollars per share) | $ 1 | |||
Percentage of conversion price | 80% | |||
Interest on Note (in Dollars) | $ 723 | $ 0 | ||
Archax Holdings Ltd [Member] | ||||
Long Term Investment (Details) [Line Items] | ||||
Aggregate share (in Shares) | 500,000 | |||
Ownership percentage | 1.74% | |||
Montis Digital Limited [Member] | ||||
Long Term Investment (Details) [Line Items] | ||||
Aggregate share (in Shares) | 250,000 | |||
Ownership percentage | 2.63% |
Long Term Investment (Details)
Long Term Investment (Details) - Schedule of long-term investment - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Equity securities without readily determinable fair values | ||
Total cost of long term investment | $ 859,108 | $ 857,011 |
Less: impairment | ||
Total | 859,108 | 857,011 |
Available-for-sale investments, Total | 109,108 | 107,011 |
Equity securities without readily determinable fair values, Total | 750,000 | 750,000 |
Archax Holdings Ltd [Member] | ||
Equity securities without readily determinable fair values | ||
Total cost of long term investment | 500,000 | 500,000 |
Montis Digital Limited [Member] | ||
Equity securities without readily determinable fair values | ||
Total cost of long term investment | 250,000 | 250,000 |
Archax Holdings Ltd.- Principal of Convertible note loan [Member] | ||
Equity securities without readily determinable fair values | ||
Total cost of long term investment | 106,289 | 106,289 |
Archax Holdings Ltd.- Interest on Convertible note loan [Member] | ||
Equity securities without readily determinable fair values | ||
Total cost of long term investment | $ 2,819 | $ 722 |
Short-Term Loans (Details) - Sc
Short-Term Loans (Details) - Schedule of Principal of short-term loans - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Short-Term Debt [Line Items] | ||
Total | $ 160,531 | $ 166,777 |
7.00% bank loan [Member] | ||
Short-Term Debt [Line Items] | ||
Total | 160,531 | 166,777 |
Bank Loan One [Member] | ||
Short-Term Debt [Line Items] | ||
Total | ||
Bank Loan Two [Member] | ||
Short-Term Debt [Line Items] | ||
Total |
Short-Term Loans (Details) - _2
Short-Term Loans (Details) - Schedule of Principal of short-term loans (Parentheticals) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Principal of short-term loans [Abstract] | ||
Bank loan, percentage | 7% | 7% |
Bank loan, due date | Jul. 15, 2020 | Jul. 15, 2020 |
Bank loan, extended date | Dec. 31, 2022 | Dec. 31, 2022 |
Long-Term Loan (Details) - Sche
Long-Term Loan (Details) - Schedule of principal of long-term loans - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Dividends Payable [Line Items] | ||
Total | $ 1,424,496 | $ 1,433,859 |
Bank Loan [Member] | ||
Dividends Payable [Line Items] | ||
Total | 1,124,596 | 1,133,959 |
U.S. federal government SBA loan [Member] | ||
Dividends Payable [Line Items] | ||
Total | 149,900 | 149,900 |
U.S. federal government SBA loan One [Member] | ||
Dividends Payable [Line Items] | ||
Total | $ 150,000 | $ 150,000 |
Long-Term Loan (Details) - Sc_2
Long-Term Loan (Details) - Schedule of principal of long-term loans (Parentheticals) | 3 Months Ended |
Mar. 31, 2022 | |
Bank Loan [Member] | |
Dividends Payable [Line Items] | |
Bank loan, percentage | 6% |
Bank loan, due date | Apr. 10, 2024 |
U.S. federal government SBA loan [Member] | |
Dividends Payable [Line Items] | |
SBA loan, percentage | 3.75% |
SBA loan, due date | Jun. 27, 2030 |
U.S. federal government SBA loan One [Member] | |
Dividends Payable [Line Items] | |
SBA loan, percentage | 3.75% |
SBA loan, due date | Jun. 27, 2030 |
Note Payables (Details)
Note Payables (Details) - USD ($) | 3 Months Ended | |||
Dec. 12, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 25, 2022 | |
Short-Term Loans [Abstract] | ||||
Principal amount | $ 2,000,000 | |||
Interest rate | 10% | |||
Conversion price per share (in Dollars per share) | $ 3.2 | $ 3.2 | ||
Interest expense | $ 49,315 | $ 0 |
Note Payables (Details) - Sched
Note Payables (Details) - Schedule of note payables - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
PX Global Advisors, LLC | ||
Principal | $ 2,000,000 | $ 2,000,000 |
Interest | 60,274 | 10,959 |
Total | $ 2,060,274 | $ 2,010,959 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
May 28, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jan. 13, 2022 | Jun. 04, 2021 | Apr. 16, 2021 | |
Related Party Transactions (Details) [Line Items] | ||||||
Percentage of ownership | 5% | 100% | ||||
Purchase of motor vehicle | $ 100,000 | |||||
Bearing annual interest percentage | 2% | |||||
Interest expense | $ 182 | $ 0 | ||||
Montis SPA [Member] | ||||||
Related Party Transactions (Details) [Line Items] | ||||||
Aggregate shares | 250,000 | |||||
Percentage of ownership | 2.63% | |||||
Archax Holdings Ltd [Member] | ||||||
Related Party Transactions (Details) [Line Items] | ||||||
Aggregate shares | 500,000 | |||||
Percentage of ownership | 1.74% |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of related party payables - PX SPAC Capital Inc [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions (Details) - Schedule of related party payables [Line Items] | ||
Principal | $ 36,916 | $ 36,916 |
Interest | 768 | 586 |
Total | $ 37,684 | $ 37,502 |
Taxation (Details)
Taxation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Taxation (Details) [Line Items] | ||
Income tax rate percentage | 25% | |
Tax payable | $ 0 | $ 0 |
New York [Member] | ||
Taxation (Details) [Line Items] | ||
Net operating loss carryforwards | 983,255 | |
South Carolina Member] | ||
Taxation (Details) [Line Items] | ||
Net operating loss carryforwards | $ 857,487 | |
EGOOS Mobile Technology Company Limited [Member] | ||
Taxation (Details) [Line Items] | ||
Income tax rate percentage | 16.50% |
Taxation (Details) - Schedule o
Taxation (Details) - Schedule of income tax expense - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of income tax expense [Abstract] | ||
Current | ||
Deferred | ||
Total |
Taxation (Details) - Schedule_2
Taxation (Details) - Schedule of taxes recoverable payable - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of taxes recoverable payable [Abstract] | ||
Income tax recoverable - current | ||
Income tax payable – noncurrent |
Taxation (Details) - Schedule_3
Taxation (Details) - Schedule of provision for income taxes on loss from continuing operations - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Current: | ||
Federal | ||
State | ||
Hong Kong | ||
Total | ||
Deferred: | ||
Federal | ||
State | ||
Total provision (benefit) for income taxes |
Taxation (Details) - Schedule_4
Taxation (Details) - Schedule of reconciliation income taxes - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule of reconciliation income taxes [Abstract] | |||
Tax at federal statutory rate | $ 294,977 | $ 294,977 | |
Foreign rate differential | |||
Others | |||
Valuation allowance | |||
Total provision (benefit) for income taxes |
Taxation (Details) - Schedule_5
Taxation (Details) - Schedule of deferred tax assets and liabilities - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule of deferred tax assets and liabilities [Abstract] | |||
NOL (Federal) | $ 294,977 | $ 294,977 | |
NOL (NY) | |||
NOL (SC) | 42,874 | 42,874 | |
Net Non-Current Deferred Tax Assets before Valuation Allowance | 337,851 | 337,851 | |
Less: Valuation Allowance | (337,851) | (337,851) | |
Non-Current Deferred Tax Assets, Net: | |||
Total Deferred Assets, Net: |
Taxation (Details) - Schedule_6
Taxation (Details) - Schedule of taxes payable - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of taxes payable [Abstract] | ||
Corporate income tax payable | ||
Franchise tax payable | 1,240 | 1,200 |
Other surtaxes payable | ||
Total | $ 1,240 | $ 1,200 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - $ / shares | 1 Months Ended | 3 Months Ended | |||||
Nov. 01, 2021 | Oct. 19, 2020 | Oct. 19, 2019 | Oct. 19, 2018 | Oct. 20, 2017 | Mar. 31, 2022 | Dec. 31, 2021 | |
Stockholders’ Equity (Details) [Line Items] | |||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |||||
Common stock, shares issued | 17,465,992 | 17,465,992 | |||||
Common stock, share outstanding | 17,465,992 | 17,465,992 | |||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||
Stock split, description | On November 1, 2021, the Company filed an amended and restated certificate of incorporation (the “Certificate of Incorporation”) with the State of Delaware, which has effected a one-for-five reverse stock split (the “Reverse Stock Split”) of the Company’s outstanding common stock, par value $0.001 per share (the “Common Stock”). | ||||||
Share purchase | 350,000 | 350,000 | 350,000 | 1,050,000 | |||
Stock option compensation, description | The Company employed the followings assumptions to calculate the fair value of the option: expected forfeiture rate: 0%, risk free rate: 2.03%, expiration date: October 19, 2022, exercise price: $1.00, annualized volatility: 602.71%, dividend yield: 0%, and the Company’s closing stock price at year end. For the years ended December 31, 2018 and 2017, the Company recorded stock option compensation expense of $1,113,217 and $373,509. | ||||||
Common Stock [Member] | |||||||
Stockholders’ Equity (Details) [Line Items] | |||||||
Common stock, par value (in Dollars per share) | $ 0.001 |
Loss Per Share (Details)
Loss Per Share (Details) | Nov. 01, 2021 |
Earnings Per Share [Abstract] | |
Reverse stock split, description | *- The computation of basic and diluted share and EPS data was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on November 1, 2021. |
Loss Per Share (Details) - Sche
Loss Per Share (Details) - Schedule of reconciliation of basic and diluted earnings per share - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Numerator: | |||
Net loss | $ (162,247) | $ (11,003) | |
Denominator: | |||
Weighted average number of common stock outstanding - basic and diluted | 17,465,992 | 4,205,543 | [1] |
Loss per share – Basic and diluted: | $ (0.00929) | $ (0.00262) | |
[1]The computation of basic and diluted share and EPS data was adjusted retroactively for all period presented to reflect the 5 to 1 reverse stock split change which was effective on November 1, 2021. |
Concentration of Risk (Details)
Concentration of Risk (Details) | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Concentration of Risk (Details) [Line Items] | |
Concentration risk percentage | 10% |
One customer [Member] | |
Concentration of Risk (Details) [Line Items] | |
Concentration risk percentage | 10% |
Vendors [Member] | |
Concentration of Risk (Details) [Line Items] | |
Concentration risk percentage | 10% |
Accounts Payable [Member] | |
Concentration of Risk (Details) [Line Items] | |
Concentration risk percentage | 10% |
United States [Member] | |
Concentration of Risk (Details) [Line Items] | |
Federal deposit insurance amount (in Dollars) | $ 100,000 |
Significant Events (Details)
Significant Events (Details) - USD ($) | 1 Months Ended | ||||||||
Mar. 15, 2022 | Jan. 13, 2022 | Mar. 31, 2022 | Mar. 25, 2022 | Feb. 16, 2022 | Dec. 31, 2021 | Dec. 12, 2021 | Nov. 18, 2021 | Apr. 16, 2021 | |
Significant Events (Details) [Line Items] | |||||||||
Issue shares (in Shares) | 1,000,000 | ||||||||
Equity ownership percentage | 5% | 100% | |||||||
Percentage of gross proceeds | 10% | ||||||||
Equity offering exercisable year | 5 years | ||||||||
Public offering price percentage | 120% | ||||||||
Accountable expenses (in Dollars) | $ 25,000 | ||||||||
shares of Hudson Capital (in Dollars per share) | $ 1 | $ 0.001 | |||||||
Total funds (in Dollars) | $ 1,000,000 | ||||||||
Net profits percentage | 8% | ||||||||
Unregistered shares (in Shares) | 156,250 | ||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||
Price per share (in Dollars per share) | $ 3.2 | $ 3.2 | |||||||
Share purchase agreement, description | On March 30, 2022, Hudson Capital USA, the subsidiary of the Company, entered into a Bought and Sold Note with Hudson Capital Inc. and executed an Instrument of Transfer to transfer its one (1) share, which represent all interest, in its wholly-owned Hong Kong subsidiary, Hongkong Internet Financial Services Limited for HK$1. | ||||||||
JSC [Member] | |||||||||
Significant Events (Details) [Line Items] | |||||||||
Percentage of gross proceeds | 10% | ||||||||
Yingbin Guo [Member] | |||||||||
Significant Events (Details) [Line Items] | |||||||||
Common stock, par value (in Dollars per share) | $ 0.001 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended |
May 17, 2022 | |
Forecast [Member] | |
Subsequent Events (Details) [Line Items] | |
Subsequent event description | On May 17, 2022, the Company and WeWin DAO LLC ( “WeWin”), a Wyoming limited liability company, entered into a token purchase agreement (the “Purchase Agreement”), pursuant to which the Company shall purchase ten billion (10,000,000,000) WWC tokens (the “Sale Tokens”), which shall represent ten percent (10%) of the ownership interest and voting rights in WeWin, for a total consideration of ten million dollars ($10,000,000.00) (the “Purchase Price”) payable in two million and five hundred thousand (2,500,000) shares of common stock of the Company, valued at $4.00 per share (the “Consideration Shares”). |