Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 21, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Yubo International Biotech Ltd | |
Entity Central Index Key | 0000895464 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 118,177,885 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 126,313 | $ 1,382,525 |
Receivables | 296,049 | 2,316 |
Prepaid expenses | 302,573 | 27,160 |
Inventory | 82,947 | 67,144 |
Due from related parties | 399,507 | 429,648 |
Total Current Assets | 1,207,389 | 1,908,793 |
Property and equipment, net | 527,936 | 79,153 |
Intangible assets, net | 52,414 | 54,912 |
Operating lease right of use assets | 1,942,351 | 315,207 |
Lease security deposit | 177,289 | 86,811 |
Total Assets | 3,907,379 | 2,444,876 |
Current liabilities | ||
Accounts payable and accrued expenses (including accounts payable and accrued expenses of VIE without recourse to the Company of $0 and $101,175 as of March 31, 2021 and December 31, 2020, respectively) | 0 | 101,175 |
Customer deposits (including customer deposits of VIE without recourse to the Company of $0 and $11,028 as of March 31, 2021 and December 31, 2020, respectively) | 0 | 11,028 |
Advances from prospective customers/distributors (including advances from prospective customers/distributors of VIE without recourse to the Company of $794,951 and $757,896 as of March 31 2021 and December 31, 2020, respectively) | 794,951 | 757,896 |
Due to related parties (including due to related parties without recourse to the Company of $243,556, and $91,951 as of March 31, 2021 and December 31, 2020 respectively) | 243,556 | 91,951 |
Operating lease liabilities - current (including operating lease liabilities - current of VIE without recourse to the Company of $231,264 and $315,207 as of March 31, 2021 and December 31, 2020, respectively) | 456,155 | 315,207 |
Total Current Liabilities | 1,494,662 | 1,277,257 |
Non-current liabilities | ||
Operating lease liabilities - non-current | 1,486,196 | 0 |
Total Liabilities | 2,980,858 | 1,277,257 |
Commitments and contingencies | 0 | 0 |
Shareholders' Equity: | ||
Preferred stock, par value $.01 per share, 5,000,000 shares authorized, none issued | 0 | |
Additional Paid in Capital | 2,117,599 | 1,991,617 |
Accumulated deficit | (1,381,669) | (942,994) |
Accumulated other comprehensive income (loss) | 72,409 | 1,996 |
Total Shareholders' Equity | 926,521 | 1,167,619 |
Total Liabilities and Shareholders' Equity | 3,907,379 | 2,444,876 |
Common Stock Class A [Member] | ||
Shareholders' Equity: | ||
Total Shareholders' Equity | 118,178 | 117,000 |
Common stock value | 118,178 | 117,000 |
Common Stock Class B [Member] | ||
Shareholders' Equity: | ||
Total Shareholders' Equity | 4 | 0 |
Common stock value | $ 4 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Accounts payable and accrued expense VIE without recourse | $ 0 | $ 101,175 |
Customer deposit VIE without recourse | 0 | 11,028 |
Advances from prospective customers/distributors without recourse to the company | 794,951 | 757,896 |
Due to related parties | $ 243,556 | $ 91,951 |
Preferred stock, par value | $ .01 | $ .01 |
Operating lease liabilities | $ 231,264 | $ 315,207 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common Stock Class A [Member] | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, issued | 118,177,885 | 117,000,000 |
Common stock, outstanding | 118,177,885 | 117,000,000 |
Common Stock Class B [Member] | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Common stock, par value | $ .001 | $ .001 |
Common stock, authorized | 3,750,000 | 3,750,000 |
Common stock, issued | 4,447 | 0 |
Common stock, outstanding | 4,447 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | ||
Sales | $ 462,329 | $ 0 |
Cost of Goods Sold | (146,738) | 0 |
Gross Profit | 315,591 | 0 |
Operating expenses: | ||
Sales commissions | 138,348 | 0 |
Employee compensation | 202,832 | 19,481 |
Occupancy | 107,734 | 75,933 |
Depreciation and amortization of property and equipment | 2,772 | 1,824 |
Amortization of intangible assets | 2,154 | 0 |
Other operating expenses | 300,321 | 43,664 |
Total Operating Expenses | 754,161 | 140,902 |
Income (loss) from operations | (438,570) | (140,902) |
Other Income (Expenses) | ||
Interest expenses | (105) | (46) |
Total Other Income (Expenses) | (105) | (46) |
Loss before Provision for Income Tax | (438,675) | (140,948) |
Provision for Income Tax | 0 | 0 |
Net loss | $ (438,675) | $ (140,948) |
Net loss per share basic and diluted | $ 0 | $ 0 |
Weighted average common shares outstanding basic and diluted | 118,130,820 | 115,245,000 |
Comprehensive income (loss) | ||
Net loss | $ (438,675) | $ (140,948) |
Foreign currency translation adjustment | 70,413 | (24,516) |
Total comprehensive income (loss) | $ (368,262) | $ (165,464) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) | Total | Additional Paid-In Capital | Accumulated Deficit | Accumulated other comprehensive loss | Common Stock Class A [Member] | Common Stock Class B [Member] |
Balance, shares at Dec. 31, 2019 | 115,245,000 | |||||
Balance, amount at Dec. 31, 2019 | $ 488,733 | $ 608,616 | $ (231,193) | $ (3,935) | $ 115,245 | $ 0 |
Capital contributions to Yubo Beijing | 504,892 | 504,892 | ||||
Net loss | (140,948) | 0 | (140,948) | 0 | 0 | 0 |
Foreign currency translation adjustment | (24,516) | 0 | 0 | (24,516) | $ 0 | $ 0 |
Balance, shares at Mar. 31, 2020 | 115,245,000 | |||||
Balance, amount at Mar. 31, 2020 | 828,161 | 1,113,508 | (372,141) | (28,451) | $ 115,245 | $ 0 |
Balance, shares at Dec. 31, 2020 | 117,000,000 | |||||
Balance, amount at Dec. 31, 2020 | 1,167,619 | 1,991,617 | (942,994) | 1,996 | $ 117,000 | $ 0 |
Capital contributions to Yubo Beijing | 127,164 | 127,164 | 0 | 0 | 0 | 0 |
Net loss | (438,675) | 0 | (438,675) | 0 | 0 | 0 |
Foreign currency translation adjustment | 70,413 | 0 | 0 | 70,413 | $ 0 | $ 0 |
Reverse acquisition of Yubo International Biotech Limited by Platinum International Biotech Co. Ltd., shares | 1,177,885 | 4,447 | ||||
Reverse acquisition of Yubo International Biotech Limited by Platinum International Biotech Co. Ltd., amount | 0 | (1,182) | 0 | 0 | $ 1,178 | $ 4 |
Balance, shares at Mar. 31, 2021 | 118,177,885 | 4,447 | ||||
Balance, amount at Mar. 31, 2021 | $ 926,521 | $ 2,117,599 | $ (1,381,669) | $ 72,409 | $ 118,178 | $ 4 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (438,675) | $ (140,948) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,926 | 1,824 |
Changes in operating assets and liabilities: | ||
Receivables | (293,733) | (34,806) |
Prepaid expense | (275,413) | (145,230) |
Inventory | (15,803) | (86,216) |
Due from related parties | 30,141 | 7,639 |
Lease security deposit | (90,478) | 0 |
Accounts payable and accrued expenses | (101,175) | 0 |
Customer deposits | (11,028) | 0 |
Advances from prospective customers/distributors | 37,055 | 0 |
Due to related parties | 151,605 | (93,852) |
Net cash used in operating activities | (1,002,578) | (491,589) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (451,555) | (48,284) |
Purchases of intangible assets | 0 | 0 |
Net cash used in investing activities | (451,555) | (48,284) |
Cash flows from financing activities: | ||
Capital Contributions to Yubo Beijing | 127,164 | 504,892 |
Net cash provided by financing activities | 127,164 | 504,892 |
Effect of exchange rate changes | 70,757 | 58,869 |
Net increase (decrease) in cash | (1,256,212) | 23,888 |
Cash at beginning of period | 1,382,525 | 1,262 |
Cash at end of period | 126,313 | 25,150 |
Supplemental Cash Flow Information: | ||
Income taxes paid | 0 | 0 |
Interest paid | 0 | 0 |
Non-cash Investing Activities: | ||
Operating lease right of use asset acquired | $ 1,930,350 | $ 0 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2021 | |
ORGANIZATION | |
Note- 1 ORGANIZATION | Yubo International Biotech Limited (formerly Magna-Lab Inc.) (the “Company”), a New York corporation, acquired Platinum International Biotech Co. Ltd. (“Platinum”) in a “reverse merger” transaction on January 14, 2021. On January 14, 2021 (the “Closing Date”), the Company closed a voluntary share exchange transaction with Platinum International Biotech Co., Ltd., a company organized under the laws of the Cayman Islands (“Platinum”), pursuant to that certain Agreement and Plan of Share Exchange, dated January 14, 2021 (the “Exchange Agreement”), by and among the Company, Platinum, Yubo International Biotech (Beijing) Limited, a company organized under the laws of the People’s Republic of China (“PRC”) (“Yubo”), and certain selling stockholders named therein. In accordance with the terms of the Exchange Agreement, on the Closing Date, the Company issued a total of 117,000,000 shares of its Class A common stock to the Selling Stockholders, who were then stockholders of Platinum (the “Selling Stockholders”), in exchange for 100% of the issued and outstanding capital stock of Platinum (the “Exchange Transaction”). As a result of the Exchange Transaction, the Selling Stockholders acquired more than 99% of the Company’s issued and outstanding capital stock, Platinum became the Company’s wholly-owned subsidiary, and the Company acquired the business and operations of Platinum and Yubo. Immediately prior to the Exchange Transaction, the Company had 117,875,323 shares of Class A common stock and 4,447 shares of Class B common stock issued and outstanding. Immediately after the Exchange Transaction and the surrender and cancellation of 116,697,438 shares held by Lina Liu, the controlling shareholder, Chief Financial Officer, Treasurer and Secretary of the Company, the Company has 118,177,885 shares of Class A common stock and 4,447 shares of Class B common stock issue and outstanding. Platinum was incorporated on April 7, 2020 under the laws of the Cayman Islands as a holding company. On May 4, 2020, Platinum incorporated a wholly owned subsidiary Platinum International Biotech (Hong Kong) Limited (“Platinum HK”) in Hong Kong. On September 4, 2020, Platinum HK incorporated a wholly foreign owned enterprise (“WFOE”) Yubo International Biotech (Chengdu) Limited (“Yubo Chengdu”) in Chengdu, China. On September 11, 2020, Yubo Chengdu entered into a series of Variable Interest Entity (“VIE”) agreements with the owners of Yubo International Biotech (Beijing) Limited (“Yubo Beijing”). Pursuant to the VIE agreements, Yubo Beijing became Yubo Chengdu’s contractually controlled affiliate. The purpose and effect of the VIE Agreements is to provide Yubo Chengdu with all management control and net profits earned by Yubo Beijing. Yubo Beijing was incorporated on June 14, 2016. For the year ended December 31, 2020 (commencing April 2020), Yubo Beijing sold approximately 850 nebulizers to customers in the People’s Republic of China (“PRC”). Upon executing the series of VIE agreements in September 2020, Yubo Beijing has been considered a Variable Interest Entity (“VIE”) of Yubo Chengdu, its primary beneficiary. Accordingly, Yubo Beijing has been consolidated under the guidance of FASB Accounting Standards Codification (“ASC”) 810, Consolidation. The officers, directors, and controlling beneficial owners of Yubo Beijing from its inception on June 14, 2016 are also officers, directors, and controlling beneficial owners of Platinum. Accordingly, the accompanying consolidated financial statements include Yubo Beijing’s operations from its inception on June 14, 2016. Commencing in the quarterly period ended March 31, 2021 Yubo Beijing started also selling certain oral liquid health products. For the three months ended March 31, 2021, sales consisted of: Oral liquid health products $ 345,607 Nebulizers 116,722 Total $ 462,329 In December 2020 and January 2021, Platinum HK formed two new wholly owned subsidiaries: Yubo Jingzhi Biotechnology (Chengdu) Co. Ltd. (“Yubo Jingzhi”) and Yubo Global Biotechnology (Chengdu) Co. Ltd (“Yubo Global”). Yubo International Biotech Limited and its consolidated subsidiaries and VIE are collectively referred to herein as the “Company” unless specific reference is made to an entity. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Interim Financial Information The unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) applicable to interim financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosure required by accounting principles generally accepted in the United States of America for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. These financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2020, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computations as the audited financial statements as of and for the year ended December 31, 2020. Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and its consolidated VIE for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and consolidated VIE have been eliminated upon consolidation. The accompanying consolidated financial statements reflect the activities of the following entities: Name Background Ownership Yubo International Biotech Limited (“Yubo New York”) · · Platinum International Biotech Co. LTD (“Platinum”) · · · 100% owned by Yubo New York Platinum International Biotech (Hong Kong) Limited. (“Platinum HK”) · · · 100% owned by Platinum Yubo International Biotech (Chengdu) Limited (“Yubo Chengdu”) · · · · 100% owned by Platinum HK Yubo International Biotech (Beijing) Limited (“Yubo Beijing”) · · · · VIE of Yubo Chengdu WFOE Yubo Jingzhi Biotechnology (ChengDu) Co. Ltd. (“Yubo Jingzhi”) · A 100% owned by Platinum HK Yubo Global Biotechnology (Chengdu) Co. Ltd (“Yubo Global) · A 100% owned by Platinum HK On September 11, 2020, our wholly-owned subsidiary, Yubo Chengdu, entered into the following contractual arrangements with Yubo Beijing and the shareholders of Yubo Beijing (the “Yubo Shareholders”), as applicable, each of which is enforceable and valid in accordance with the laws of the PRC: Exclusive Consulting Services Agreement Pursuant to the Exclusive Consulting Services Agreement among Yubo, Yubo WFOE, and the Yubo Shareholders, Yubo WFOE agrees to provide, and Yubo agrees to accept, exclusive management services provided by Yubo WFOE. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of Yubo. The Exclusive Consulting Services Agreement will remain in effect until the acquisition of all assets or equity of Yubo by Yubo WFOE is complete (as more fully described in the Exclusive Purchase Option Agreement below). Exclusive Purchase Option Agreement Under the Exclusive Option Agreement among Yubo, Yubo WFOE, and the Yubo Shareholders, the Yubo Shareholders granted Yubo WFOE an irrevocable and exclusive purchase option to acquire Yubo’s equity and/or assets at a nominal consideration. Yubo WFOE may exercise the purchase option at any time. Equity Pledge Agreement Under the Equity Pledge Agreement among Yubo WFOE and the Yubo Shareholders, the Yubo Shareholders pledged all of their equity interests in Yubo, including the proceeds thereof, to guarantee all of Yubo WFOE’s rights and benefits under the Exclusive Consulting Services Agreement and the Exclusive Option Agreement. Prior to termination of this Equity Pledge Agreement, the pledged equity interests cannot be transferred without Yubo WFOE’s prior consent. The Yubo Shareholders covenants to Yubo WFOE that among other things, it will only appoint/elect the candidates for the directors of Yubo nominated by Yubo WFOE. Financial Statements of Yubo Beijing (VIE) The assets and liabilities of Yubo Beijing (VIE) at March 31, 2021 and December 31, 2020 consist of: March 31, 2021 December 31, 2020 Cash $ 48,278 $ 746,613 Receivables 296,049 2,316 Prepaid Expenses 58,399 27,160 Inventory 82,947 67,144 Due from related parties 399,507 429,648 Property and equipment (net) 80,337 79,153 Intangible assets (net) 52,414 54,912 Operating lease right of use assets 231,264 315,207 Lease security deposits 86,255 86,811 Investment in Yubo Jingzhi (A) 228,290 - Receivables from other consolidating entities (A) 250,624 - Total assets 1,814,364 1,808,964 Accounts payable and accrued expense - 101,175 Customer deposits - 11,028 Advances from prospective customers/distributors 794,951 757,896 Due to related partis 243,556 91,951 Operating lease liabilities 231,264 315,207 Total liabilities 1,269,771 1,277,257 Shareholders' equity $ 544,593 $ 531,707 Except for $149,769 other operating expenses for the three months ended March 31, 2021, all revenues and expenses included in the accompanying Consolidated Statements of Operations for the three months ended March 31, 2021 and March 31, 2020 represent revenues and expenses of Yubo Beijing. Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars (“$”), which is the reporting currency of the Company. The functional currency of Platinum and Platinum HK is the United States dollar. The functional currency of the Company’s subsidiaries and VIE located in the PRC is the Renminbi (“RMB”). For the entities whose functional currencies are the RMB, results of operations and cash flows are translated at average exchange rates during the period ($1=6.5506 RMB for the three months ended March 31, 2021 and $1=7.0312 RMB for the three months ended March 31, 2020), assets and liabilities are translated at the current exchange rate at the end of the period ($1=6.5706 RMB at March 31, 2021 and $1=6.5286 RMB at December 31, 2020), and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income (loss). Transaction gains and losses, which were not significant for the periods presented, are reflected in the consolidated statements of operations. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, and income taxes including the valuation allowance for deferred tax assets. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash in bank accounts, cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. Inventories Inventories, mainly consisting of nebulizers and components, are stated at the lower of cost utilizing the weighted average method or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated selling costs. The valuation of inventory requires the Company to estimate excess and slow-moving inventories. The Company evaluates the recoverability of the inventory based on expected demand and market conditions. No inventory write downs were recorded in the periods presented. Property and Equipment Property and equipment consist of leasehold improvements, air conditioning equipment, and office equipment. All property and equipment are stated at historical cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the following periods: Leasehold improvements Remaining term of lease Air conditioning equipment 5 years Office equipment 3 years Intangible Assets Intangible assets consist of distribution software and patents and are stated at historical cost less accumulated amortization. Amortization of intangible assets is calculated on a straight-line basis over the shorter of the contractual terms or the expected useful lives of the respective assets. The amortization period by major asset classes is as follows: Distribution software 5 years Patents 20 years Impairment of Long-Lived Assets The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial position. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Fair Value of Financial Instruments The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) 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 assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments include cash, receivables, due from related parties, accounts payable and accrued expenses, advances from prospective customers/distributors and due to related parties. The carrying values of these financial instruments approximate their fair values due to the short-term maturities of these instruments. For the periods presented, there were no financial assets or liabilities measured at fair value. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities - current, and operating lease liabilities - noncurrent on the balance sheets. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The initial measurement of the right-of-use asset is equal to the initial lease liability plus any initial direct costs. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Revenue Recognition The Company derives its revenue from the sale of nebulizers containing frozen tubes with medical fluid and from the sale of oral liquids health products. The nebulizers are sold directly to consumers on the Company’s online e-commerce platform. The Company recognizes product revenues when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured. The Company does not allow sales returns or exchanges. Revenue is recorded net of value-added tax (“VAT”). Advertising Costs Advertising costs are expensed as incurred. Income Taxes The Company follows the liability method in accounting for income taxes in accordance with ASC topic 740 (“ASC 740”), Income Taxes. The Company applies the provisions of ASC 740 to account for uncertainty in income taxes. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the consolidated financial statements. The Company will classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of operations. Net Loss per Share Basic loss per ordinary share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted loss per ordinary share reflects the potential dilution that could occur if dilutive securities (such as stock options and convertible securities) were exercised or converted into ordinary shares. For the periods presented, the Company had no dilutive securities outstanding. Comprehensive Loss Comprehensive loss is defined as the decrease in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Comprehensive loss is reported in the consolidated statements of operations and comprehensive loss, including net loss and foreign currency translation adjustments, presented net of tax. New Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (ASU 2016-02) “Leases (Topic 842)”. ASU 2016-02 requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. For finance leases, a lessee is required to do the following: · Recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the balance sheet. · Recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income. · Classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. For operating leases, a lessee is required to do the following: · Recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the balance sheet. · Recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. · Classify all cash payments within operating activities in the statement of cash flows. Other than increasing assets and liabilities at the inception of Yubo Beijing’s office lease on August 1, 2019 and Yubo Global’s laboratory space lease on March 1, 2021 (See Note 8), ASU 2016-02 has not had a significant effect on the Company’s financial position or results of operations. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material impact on its consolidated financial position, statements of operations or cash flows. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Mar. 31, 2021 | |
GOING CONCERN | |
NOTE 3 - GOING CONCERN | The Company’s financial statements as of March 31, 2021 and December 31, 2020 have been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues and cash flows sufficient to cover its operating costs and allow it to continue as a going concern. For the three-months ended March 31, 2021 and March 31, 2020, the Company had losses of $438,675 and $140,948, respectively. These factors among others raise substantial doubt about the ability of the company to continue as a going concern for a reasonable period of time. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2021 | |
INVENTORY | |
NOTE 4 - INVENTORY | Inventory consisted of the following: March 31, December 31, 2021 2020 (Unaudited) Product components raw materials: Frozen tubes to be attached to the nebulizer product $ 39,317 $ 40,499 Unassembled nebulizers 19,403 4,733 Fluids to be inserted in the frozen tubes 10,327 11,470 Total product components raw materials 69,047 56,702 Refrigerated boxes 7,455 3,310 Delivery boxes 6,445 7,132 Total Inventory $ 82,947 $ 67,144 |
DUE FROM RELATED PARTIES
DUE FROM RELATED PARTIES | 3 Months Ended |
Mar. 31, 2021 | |
DUE FROM RELATED PARTIES | |
NOTE 5 - DUE FROM RELATED PARTIES | Due from related parties consisted of: March 31, December 31, 2021 2020 (Unaudited) Beijing Zhenhuikang Biotechnology Co., LTD (“Zhenhuikang”) (1) $ 399,507 $ 404,288 Yubo Global Biotechnology (Chengdu) Co., Ltd. (2) - 25,360 Total Due From Related Parties $ 399,507 $ 429,648 (1) Zhenhuikang is controlled by Zhenxigu. (2) Yubo Global Biotechnology (Chengdu) Co., Ltd. is controlled by Mr. Jun Wang. The due from related parties receivables are noninterest bearing and are due on demand. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2021 | |
PROPERTY AND EQUIPMENT | |
NOTE 6 - PROPERTY AND EQUIPMENT | Property and equipment, net, consisted of the following: March 31, December 31, 2021 2020 (Unaudited) Leasehold improvements $ 41,396 $ 44,777 Construction in progress 411,721 - Air conditioning equipment 57,241 21,496 Office equipment 29,645 22,241 Total property and equipment 540,003 88,514 Less accumulated depreciation and amortization (12,067 ) (9,361 ) Property and equipment, net $ 527,936 $ 79,153 For the three-months ended March 31, 2021 and 2020, depreciation and amortization of property and equipment was $2,772 and $1,824, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
INTANGIBLE ASSETS | |
NOTE 7 - INTANGIBLE ASSETS | Intangible assets, net, consisted of the following: March 31, December 31, 2021 2020 (Unaudited) Distribution software $ 37,672 $ 37,907 Patents acquired from related party (Note 12) 21,096 21,239 Total intangible assets 58,768 59,146 Less: Accumulated amortization (6,354 ) (4,234 ) Intangible assets, net $ 52,414 $ 54,912 For the three-months ended March 31, 2021 and 2020, amortization of intangible assets expense was $2,154 and $0, respectively. At March 31, 2021, the expected future amortization of intangible assets expense was: Year ending December 31, 2021 $ 6,134 Year ending December 31, 2022 8,632 Year ending December 31, 2023 8,632 Year ending December 31, 2024 8,632 Year ending December 31, 2025 4,846 Thereafter 15,538 Total $ 52,414 |
OPERATING LEASE RIGHT OF USE AS
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY | 3 Months Ended |
Mar. 31, 2021 | |
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY | |
NOTE 8 - OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY | On August 1, 2019, Yubo Beijing executed a lease agreement with Jiu Si Cheng Investment Management (the “Landlord”) to rent approximately 746 square meters of office space in Beijing China. The lease provided for an initial term of 2 years and 4 months from August 2, 2019 to November 30, 2021 with a right to renew for an additional term of 2 years and 8 months from December 1, 2021 to July 31, 2024. The lease also provided for payments of quarterly rent and management fees to the landlord for the initial term of a total of RMB 4,756,649 ($728,586 at the 6.5706 current exchange rate at March 31, 2021) and the payment of a security deposit to the Landlord of RMB 566,754 ($86,257 at the 6.5706 current exchange rate at March 31, 2021). Effective March 1, 2021, Yubo Global executed a lease agreement with Chengdu Liangkang Investment Co. to rent approximately 6,960 square meters of laboratory space in Chengdu China. The lease provides for a lease term of 5 years from March 1, 2021 to February 28, 2026. The lease also provides for payments of monthly rent to the landlord of approximately RMB 300,000 ($45,658 at the 6.5706 current exchange rate at March 31, 2021) and the payment of a security deposit to the Landlord of RMB $598,553 ($91,096 at the 6.5706 current exchange rate at March 31, 2021). At March 31, 2021, the future undiscounted minimum lease payments under the two noncancellable leases are as follows: As of March 31, 2021 Year ending December 31, 2021 $ 644,319 Year ending December 31, 2022 546,573 Year ending December 31, 2023 546,573 Year ending December 31, 2024 573,902 Year ending December 31, 2025 579,368 Thereafter 96,561 Total $ 2,987,296 The operating lease liabilities totaling $1,942,351 at March 31, 2021 as presented in the Consolidated Balance Sheet represents the discounted (at a 4.75% estimated incremental borrowing rate) value of the future lease payments of $2,987,296 March 31, 2021. For the three-months ended March 31, 2021 and March 31, 2020, occupancy expense attributable to these two leases was $86,555 and $60,257, respectively. |
ADVANCES FROM PROSPECTIVE CUSTO
ADVANCES FROM PROSPECTIVE CUSTOMERSDISTRIBUTORS | 3 Months Ended |
Mar. 31, 2021 | |
ADVANCES FROM PROSPECTIVE CUSTOMERSDISTRIBUTORS | |
NOTE 9 - ADVANCES FROM PROSPECTIVE CUSTOMERS/DISTRIBUTORS | As of March 31, 2021, Yubo Beijing received a total of RMB ¥ 5,229,012 ($794,951) from nine PRC entities in amounts of RMB ¥ 348,000, RMB ¥50,000, RMB ¥50,000, RMB ¥500,000, RMB ¥500,000, RMB ¥500,000, RMB ¥3,000,000, RMB¥ 31,012, and RMB ¥250,000. The related verbal agreements provide for the nine entities to purchase inventory from Yubo Beijing or enter into such other arrangements with Yubo Beijing as the parties mutually agree. Pending formal approval of any such arrangements, all of the nine PRC entities have the right to request the return of their advances. |
DUE TO RELATED PARTIES
DUE TO RELATED PARTIES | 3 Months Ended |
Mar. 31, 2021 | |
DUE TO RELATED PARTIES | |
NOTE 10 - DUE TO RELATED PARTIES | Due to related parties consisted of the following: March 31, December 31, 2021 2020 (Unaudited) Mr. Jun Wang (1) $ - - Mr. Yang Wang (2) 243,556 91,951 Total $ 243,556 91,951 (1) Mr. Jun Wang controls 33.80% of the outstanding Class A common stock of Yubo New York and is the chief executive officer and a director of Yubo New York and Yubo Beijing. (2) Mr. Yang Wang controls 21.14% of the outstanding Class A common stock of Yubo New York and is a director of the Company and Yubo Beijing. The due to related parties payables are noninterest bearing and are due on demand. |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
SHAREHOLDERS EQUITY | |
NOTE 11 - SHAREHOLDERS' EQUITY | Yubo Biotech International Limited The Company has three types of stocks: Preferred stock – par value 0.01 per share, 5,000,000 shares authorized, none issued. Common Stock Class A – par value 0.001 per share, 1,000,000,000 shares authorized, 118,177,885 shares issued and outstanding at March 31, 2021. Common Stock Class B – par value 0.001 per share, 3,750,000 shares authorized, 4,447 shares issued and outstanding at March 31, 2021. On January 14, 2021, Lina Liu, Company CFO, cancelled 116,697,438 shares of Class A common stock acquired by her on October 2, 2020. The Company issued 117,000,000 shares of Class A common stock issued in connection with the acquisition of Platinum. Name of Selling Shareholder Number of Exchange Shares Percentage of Exchange Shares FLYDRAGON INTERNATIONAL LIMITED (controlled by Mr. Jun Wang) 39,943,800 34.14 % CHINAONE TECHNOLOGY LIMITED (controlled by Mr. Yang Wang) 19,211,400 16.42 % BOAO BIOTECH LIMITED (controlled by Mr. Yulin Cao) 24,967,800 21.34 % FOCUS DRAW GROUP LIMITED (controlled by Ms. Lina Liu) 13,829,400 11.82 % FOCUSONE TECHNOLOGY GROUP LIMITED (controlled by Mr. Jin Wei) 11,524,500 9.85 % DRAGONCLOUD TECHNOLOGY LIMITED (Controlled by Mr. Yang Wang) 5,768,100 4.93 % CHEUNG HO SHUN 1,755,000 1.50 % TOTAL 117,000,000 100.00 % Platinum International Biotech Co., LTD (Cayman Islands) (“Platinum”) Platinum has authorized 500,000,000 ordinary shares with a par value of $0.0001 per share with 10,152,284 shares issued and outstanding at March 31, 2021. On April 7, 2020, Platinum issued a total of 10,000,000 ordinary shares to six entities as follows: Entity Shares 1. Flydragon International Limited (controlled by Mr. Jun Wang) 3,466,000 2. Chinaone Technology Limited (controlled by Mr. Yang Wang) 1,667,000 3. Boao Biotech Limited (controlled by Mr. Yulin Cao) 2,167,000 4. Dragoncloud Technology Limited (controlled by Mr. Yang Wang) 500,000 5. Focus Draw Group Limited (controlled by Ms. Lina Liu) 1,200,000 6. Focusone Technology Group Limited (controlled by Mr. Jin Wei) 1,000,000 Total 10,000,000 On September 11, 2020, Platinum sold 152,284 ordinary shares to an investor for $750,000 cash. On January 21, 2021, Yubo New York acquired all 10,152,284 ordinary shares of Platinum outstanding. Yubo International Biotech (Chengdu) Limited (“Yubo Chengdu”) Yubo Chengdu has subscribed capital of $1,500,000 which has not yet been paid by its shareholder. The subscribed capital is due for payment on January 1, 2040. Yubo International Biotech (Beijing) Limited (“Yubo Beijing”) Yubo Beijing has subscribed capital of $1,521,931 (RMB 10,000,000), all of which have been paid by its shareholders as of March 31, 2021. Restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries or its VIE. Relevant PRC statutory laws and regulations permit payments of dividends by Yubo Chengdu, Yubo Jingzhi, Yubo Global, and Yubo Beijing only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations and after it has met the PRC requirements for appropriation to statutory reserves. Paid in capital of the PRC subsidiary and VIE included in the Company’s consolidated net assets are also non-distributable for dividend purposes. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of Yubo Chengdu, Yubo Jingzhi, Yubo Global, and Yubo Beijing. Yubo Chengdu, Yubo Jingzhi, Yubo,Global and Yubo Beijing are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, Yubo Chengdu, Yubo Jingzhi, Yubo Global and Yubo Beijing may allocate a portion of its after-tax profits based on PRC accounting standards to an enterprise expansion fund and a staff bonus and welfare fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Since inception to March 31, 2021, Yubo Chengdu, Yubo Jingzhi, Yubo Global, and Yubo Beijing have not generated any profit and had negative retained earnings as of March 31, 2021. As a result, these entities have not accrued statutory reserve funds. The ability of the Company’s PRC subsidiary and its VIE to make dividends and other payments to the Company may also be restricted by changes in applicable foreign exchange and other laws and regulations. Foreign currency exchange regulation in China is primarily governed by the following rules: · Foreign Exchange Administration Rules (1996), as amended in August 2008, or the Exchange Rules; · Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), or the Administration Rules. Currently, under the Administration Rules, Renminbi is freely convertible for current account items, including the distribution of dividends, interest payments, trade and service related foreign exchange transactions, but not for capital account items, such as direct investments, loans, repatriation of investments and investments in securities outside of China, unless the prior approval of the State Administration of Foreign Exchange (the “SAFE”) is obtained and prior registration with the SAFE is made. Foreign-invested enterprises that need foreign exchange for the distribution of profits to its shareholders may affect payment from their foreign exchange accounts or purchase and pay foreign exchange rates at the designated foreign exchange banks to their foreign shareholders by producing board resolutions for such profit distribution. Based on their needs, foreign-invested enterprises are permitted to open foreign exchange settlement accounts for current account receipts and payments of foreign exchange along with specialized accounts for capital account receipts and payments of foreign exchange at certain designated foreign exchange banks. Although the current Exchange Rules allow the convertibility of Chinese Renminbi into foreign currency for current account items, conversion of Chinese Renminbi into foreign exchange for capital items, such as foreign direct investment, loans or securities, requires the approval of SAFE, which is under the authority of the People’s Bank of China. These approvals, however, do not guarantee the availability of foreign currency conversion. The Company cannot be sure that it will be able to obtain all required conversion approvals for its operations or that the Chinese regulatory authorities will not impose greater restrictions on the convertibility of Chinese Renminbi in the future. Currently, all of the Company’s revenues are generated in Renminbi. Any future restrictions on currency exchanges may limit the Company’s ability to use its retained earnings generated in Renminbi to make dividends or other payments in U.S. dollars or fund possible business activities outside China. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
NOTE 12- RELATED PARTY TRANSACTIONS | On February 17, 2020, Yubo Beijing executed an Agreement of Joint Research and Development with Beijing Zhenxigu Medical Research Center LP (“Zhenxigu”), an entity that owns 18.18% of Yubo Beijing Capital stock and is controlled by Mr. Yulin Cao (who is a director of Platinum and Yubo Beijing). Pursuant to the agreement, Yubo Beijing paid RMB 241,880 ($35,848 at the 6.7473 average exchange rate for the year ended December 31, 2020) to Zhenxigu for research and development relating to the medical fluid to be included with the nebulizers to be sold to customers. Such expense has been included with other operating expenses in the accompanying Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2020. On February 27, 2020, Yubo Beijing executed a Patent Transfer Agreement with Beijing Zhenhuikang Biotechnology Co. LTD (“Zhenhuikang”), an entity controlled by Mr. Yulin Cao (who is a director of Platinum and Yubo Beijing). The Agreement provided for the assignment of two patents owned by Zhenhuikang to Yubo Beijing for consideration of RMB 140,000 ($21,307 at the 6.5706 current exchange rate at March 31, 2021) (See Note 7). |
INCOME TAX
INCOME TAX | 3 Months Ended |
Mar. 31, 2021 | |
INCOME TAX | |
NOTE 13 - INCOME TAX | Cayman Islands Under the current laws of the Cayman Islands, Platinum is not subject to tax on income or capital gains. In addition, payments of dividends by Platinum to its shareholders are not subject to withholding tax in the Cayman Islands. Hong Kong Platinum HK was incorporated under the Hong Kong tax law where the statutory income tax rate is 16.5%. Platinum HK has had no taxable income or loss from May 4, 2020 (inception) to March 31, 2021. People’s Republic of China Yubo International Biotech (Chengdu) Limited (“Yubo Chengdu”), Yubo Jingzhi Biotechnology (Chengdu) Co. LTD. (“Yubo Jingzhi”), Yubo Global Biotechnology (Chengdu) Co. Ltd (“Yubo Global”) and Yubo International Biotech (Beijing) Limited were incorporated in the PRC and are subject to PRC Enterprise Income Tax (“EIT”) on their taxable income in accordance with the relevant PRC income tax laws. On March 16, 2007, the National People’s Congress enacted a new enterprise income tax law, which took effect on January 1, 2008. The law applies a uniform 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. Yubo Chengdu and Yubo Jingzhi have had no taxable income or loss from September 4, 2020 (inception) to March 31, 2021. Yubo Beijing has had net losses of $231,193 for the year ended December 31, 2019, $597,713 for the year ended December 31, 2020, and $192,087 for the three months ended March 31, 2021. These losses can be carried forward for five years to reduce future years’ taxable income through year 2024 to year 2026. Based on management’s present assessment, the Company has not yet determined it to be more likely than not that future utilization of the net operating loss carryforwards will be realized. Accordingly, the Company has recorded a 100% valuation allowance against the deferred tax asset at March 31, 2021 and December 31, 2010. The components of deferred tax assets were as follows: March 31, 2021` December 31, 2020 Net operating losses carry forward $ 279,392 $ 207,227 Valuation allowance (279,392 ) (207,227 ) Deferred tax assets, net $ — $ — The reconciliation of the provisions for (benefits from) income tax by applying the PRC tax rate to income (loss) before provisions for income tax and the actual provisions for income tax is as follows: For the three months ended March 31, 2021 For the three months ended March 31, 2020 Income tax (benefits) at 25% $ (109,669 ) $ (35,237 ) Net loss of Platinum 37,504 - Increase in valuation allowance 72,165 35,237 Provision for income taxes $ — $ — Accounting for Uncertainty in Income Taxes The tax authority of the PRC government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. Therefore, the Company’s PRC entities’ tax filings results are subject to change and may lead to tax liabilities. ASC 740 requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax positions and concluded that no liability for uncertainty in income taxes was necessary as of March 31, 2021 and December 31, 2020. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 14 - COMMITMENTS AND CONTINGENCIES | Freelancer Service Contract On March 30, 2020, Yubo Beijing executed an agreement with Hainan Huiyonggong Service Ltd. (“HHS”). The agreement provided for HHS to engage sales representatives (often Yubo Beijing customers) to refer new customers to Yubo Beijing and for Yubo Beijing to pay fees to HHS based on the amount of sales generated from HHS’s sales representatives. The term of the agreement was for one year expiring March 29, 2021. For the three months ended March 31, 2021, the Company expensed $138,349 pursuant to this agreement which is included in “Sales Commissions” in the accompanying statement of operations. Website Platform Maintenance Agreement On April 29, 2020, Yubo Beijing executed an agreement with Hainan Haifu Technology Ltd. (“HHT”). The agreement provided for HHT to provide certain website maintenance services for Yubo Beijing and provided for Yubo Beijing to pay a monthly fee of RMB 150,000 ($22,231 using the December 31, 2020 average rate of 6.7473) to HHT. The term of the agreement, which originally was for one year expiring April 28, 2021, was mutually terminated on October 30, 2020. Credit risk Cash deposits with banks are held in financial institutions in the PRC, which are insured with deposit protection up to RMB 500,000 (approximately $76,097 at March 31, 2020). Accordingly, the Company has a concentration of credit risk related to the uninsured part of bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk. Risks of Variable Interest Entity Structure Although the structure the Company has adopted is consistent with longstanding industry practice, and is commonly adopted by comparable companies in China, the PRC government may not agree that these arrangements comply with PRC licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted in the future. There are uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the Company’s contractual arrangements, which could limit the Company’s ability to enforce these contractual arrangements. If the Company or its variable interest entity is found to be in violation of any existing or future PRC laws, rules or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including levying fines, revoking business and other licenses of the Company’s variable interest entity, requiring the Company to discontinue or restrict its operations, restricting its right to collect revenue, requiring the Company to restructure its operations or taking other regulatory or enforcement actions against the Company. In addition, it is unclear what impact the PRC government actions would have on the Company and on its ability to consolidate the financial results of its variable interest entity in the consolidated financial statements, if the PRC government authorities were to find the Company’s legal structure and contractual arrangements to be in violation of PRC laws, rules and regulations. If the imposition of any of these government actions causes the Company to lose its right to direct the activities of Yubo Beijing or the right to receive their economic benefits, the Company would no longer be able to consolidate Yubo Beijing. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Interim Financial Information | The unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) applicable to interim financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosure required by accounting principles generally accepted in the United States of America for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. These financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2020, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computations as the audited financial statements as of and for the year ended December 31, 2020. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and its consolidated VIE for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and consolidated VIE have been eliminated upon consolidation. The accompanying consolidated financial statements reflect the activities of the following entities: Name Background Ownership Yubo International Biotech Limited (“Yubo New York”) · · Platinum International Biotech Co. LTD (“Platinum”) · · · 100% owned by Yubo New York Platinum International Biotech (Hong Kong) Limited. (“Platinum HK”) · · · 100% owned by Platinum Yubo International Biotech (Chengdu) Limited (“Yubo Chengdu”) · · · · 100% owned by Platinum HK Yubo International Biotech (Beijing) Limited (“Yubo Beijing”) · · · · VIE of Yubo Chengdu WFOE Yubo Jingzhi Biotechnology (ChengDu) Co. Ltd. (“Yubo Jingzhi”) · A 100% owned by Platinum HK Yubo Global Biotechnology (Chengdu) Co. Ltd (“Yubo Global) · A 100% owned by Platinum HK On September 11, 2020, our wholly-owned subsidiary, Yubo Chengdu, entered into the following contractual arrangements with Yubo Beijing and the shareholders of Yubo Beijing (the “Yubo Shareholders”), as applicable, each of which is enforceable and valid in accordance with the laws of the PRC: Exclusive Consulting Services Agreement Pursuant to the Exclusive Consulting Services Agreement among Yubo, Yubo WFOE, and the Yubo Shareholders, Yubo WFOE agrees to provide, and Yubo agrees to accept, exclusive management services provided by Yubo WFOE. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of Yubo. The Exclusive Consulting Services Agreement will remain in effect until the acquisition of all assets or equity of Yubo by Yubo WFOE is complete (as more fully described in the Exclusive Purchase Option Agreement below). Exclusive Purchase Option Agreement Under the Exclusive Option Agreement among Yubo, Yubo WFOE, and the Yubo Shareholders, the Yubo Shareholders granted Yubo WFOE an irrevocable and exclusive purchase option to acquire Yubo’s equity and/or assets at a nominal consideration. Yubo WFOE may exercise the purchase option at any time. Equity Pledge Agreement Under the Equity Pledge Agreement among Yubo WFOE and the Yubo Shareholders, the Yubo Shareholders pledged all of their equity interests in Yubo, including the proceeds thereof, to guarantee all of Yubo WFOE’s rights and benefits under the Exclusive Consulting Services Agreement and the Exclusive Option Agreement. Prior to termination of this Equity Pledge Agreement, the pledged equity interests cannot be transferred without Yubo WFOE’s prior consent. The Yubo Shareholders covenants to Yubo WFOE that among other things, it will only appoint/elect the candidates for the directors of Yubo nominated by Yubo WFOE. |
Exclusive Consulting Services Agreement | Pursuant to the Exclusive Consulting Services Agreement among Yubo, Yubo WFOE, and the Yubo Shareholders, Yubo WFOE agrees to provide, and Yubo agrees to accept, exclusive management services provided by Yubo WFOE. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of Yubo. The Exclusive Consulting Services Agreement will remain in effect until the acquisition of all assets or equity of Yubo by Yubo WFOE is complete (as more fully described in the Exclusive Purchase Option Agreement below). |
Exclusive Purchase Option Agreement | Under the Exclusive Option Agreement among Yubo, Yubo WFOE, and the Yubo Shareholders, the Yubo Shareholders granted Yubo WFOE an irrevocable and exclusive purchase option to acquire Yubo’s equity and/or assets at a nominal consideration. Yubo WFOE may exercise the purchase option at any time. |
Equity Pledge Agreement | Under the Equity Pledge Agreement among Yubo WFOE and the Yubo Shareholders, the Yubo Shareholders pledged all of their equity interests in Yubo, including the proceeds thereof, to guarantee all of Yubo WFOE’s rights and benefits under the Exclusive Consulting Services Agreement and the Exclusive Option Agreement. Prior to termination of this Equity Pledge Agreement, the pledged equity interests cannot be transferred without Yubo WFOE’s prior consent. The Yubo Shareholders covenants to Yubo WFOE that among other things, it will only appoint/elect the candidates for the directors of Yubo nominated by Yubo WFOE. |
Financial Statements of Yubo Beijing (VIE) | The assets and liabilities of Yubo Beijing (VIE) at March 31, 2021 and December 31, 2020 consist of: March 31, 2021 December 31, 2020 Cash $ 48,278 $ 746,613 Receivables 296,049 2,316 Prepaid Expenses 58,399 27,160 Inventory 82,947 67,144 Due from related parties 399,507 429,648 Property and equipment (net) 80,337 79,153 Intangible assets (net) 52,414 54,912 Operating lease right of use assets 231,264 315,207 Lease security deposits 86,255 86,811 Investment in Yubo Jingzhi (A) 228,290 - Receivables from other consolidating entities (A) 250,624 - Total assets 1,814,364 1,808,964 Accounts payable and accrued expense - 101,175 Customer deposits - 11,028 Advances from prospective customers/distributors 794,951 757,896 Due to related partis 243,556 91,951 Operating lease liabilities 231,264 315,207 Total liabilities 1,269,771 1,277,257 Shareholders' equity $ 544,593 $ 531,707 Except for $149,769 other operating expenses for the three months ended March 31, 2021, all revenues and expenses included in the accompanying Consolidated Statements of Operations for the three months ended March 31, 2021 and March 31, 2020 represent revenues and expenses of Yubo Beijing. |
Foreign Currency Translation | The accompanying consolidated financial statements are presented in United States dollars (“$”), which is the reporting currency of the Company. The functional currency of Platinum and Platinum HK is the United States dollar. The functional currency of the Company’s subsidiaries and VIE located in the PRC is the Renminbi (“RMB”). For the entities whose functional currencies are the RMB, results of operations and cash flows are translated at average exchange rates during the period ($1=6.5506 RMB for the three months ended March 31, 2021 and $1=7.0312 RMB for the three months ended March 31, 2020), assets and liabilities are translated at the current exchange rate at the end of the period ($1=6.5706 RMB at March 31, 2021 and $1=6.5286 RMB at December 31, 2020), and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income (loss). Transaction gains and losses, which were not significant for the periods presented, are reflected in the consolidated statements of operations. |
Fair Value of Financial Instruments | The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) 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 assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments include cash, receivables, due from related parties, accounts payable and accrued expenses, advances from prospective customers/distributors and due to related parties. The carrying values of these financial instruments approximate their fair values due to the short-term maturities of these instruments. For the periods presented, there were no financial assets or liabilities measured at fair value. |
Leases | We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities - current, and operating lease liabilities - noncurrent on the balance sheets. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The initial measurement of the right-of-use asset is equal to the initial lease liability plus any initial direct costs. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. |
Revenue Recognition | The Company derives its revenue from the sale of nebulizers containing frozen tubes with medical fluid and from the sale of oral liquids health products. The nebulizers are sold directly to consumers on the Company’s online e-commerce platform. The Company recognizes product revenues when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured. The Company does not allow sales returns or exchanges. Revenue is recorded net of value-added tax (“VAT”). |
Advertising Costs | Advertising costs are expensed as incurred. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, and income taxes including the valuation allowance for deferred tax assets. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. |
Cash and Cash Equivalents | Cash and cash equivalents include cash on hand, cash in bank accounts, cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. |
Inventories | Inventories, mainly consisting of nebulizers and components, are stated at the lower of cost utilizing the weighted average method or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated selling costs. The valuation of inventory requires the Company to estimate excess and slow-moving inventories. The Company evaluates the recoverability of the inventory based on expected demand and market conditions. No inventory write downs were recorded in the periods presented. |
Property and Equipment | Property and equipment consist of leasehold improvements, air conditioning equipment, and office equipment. All property and equipment are stated at historical cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the following periods: Leasehold improvements Remaining term of lease Air conditioning equipment 5 years Office equipment 3 years |
Intangible Assets | Intangible assets consist of distribution software and patents and are stated at historical cost less accumulated amortization. Amortization of intangible assets is calculated on a straight-line basis over the shorter of the contractual terms or the expected useful lives of the respective assets. The amortization period by major asset classes is as follows: Distribution software 5 years Patents 20 years |
Impairment of Long-Lived Assets | The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial position. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Income Taxes | The Company follows the liability method in accounting for income taxes in accordance with ASC topic 740 (“ASC 740”), Income Taxes. The Company applies the provisions of ASC 740 to account for uncertainty in income taxes. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the consolidated financial statements. The Company will classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of operations. |
Comprehensive Loss | Comprehensive loss is defined as the decrease in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Comprehensive loss is reported in the consolidated statements of operations and comprehensive loss, including net loss and foreign currency translation adjustments, presented net of tax. |
Net Income Per share | Basic loss per ordinary share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted loss per ordinary share reflects the potential dilution that could occur if dilutive securities (such as stock options and convertible securities) were exercised or converted into ordinary shares. For the periods presented, the Company had no dilutive securities outstanding. |
New Accounting Pronouncements | In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (ASU 2016-02) “Leases (Topic 842)”. ASU 2016-02 requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. For finance leases, a lessee is required to do the following: · Recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the balance sheet. · Recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income. · Classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. For operating leases, a lessee is required to do the following: · Recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the balance sheet. · Recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. · Classify all cash payments within operating activities in the statement of cash flows. Other than increasing assets and liabilities at the inception of Yubo Beijing’s office lease on August 1, 2019 and Yubo Global’s laboratory space lease on March 1, 2021 (See Note 8), ASU 2016-02 has not had a significant effect on the Company’s financial position or results of operations. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material impact on its consolidated financial position, statements of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of owned subsidiary | Name Background Ownership Yubo International Biotech Limited (“Yubo New York”) · · Platinum International Biotech Co. LTD (“Platinum”) · · · 100% owned by Yubo New York Platinum International Biotech (Hong Kong) Limited. (“Platinum HK”) · · · 100% owned by Platinum Yubo International Biotech (Chengdu) Limited (“Yubo Chengdu”) · · · · 100% owned by Platinum HK Yubo International Biotech (Beijing) Limited (“Yubo Beijing”) · · · · VIE of Yubo Chengdu WFOE Yubo Jingzhi Biotechnology (ChengDu) Co. Ltd. (“Yubo Jingzhi”) · A 100% owned by Platinum HK Yubo Global Biotechnology (Chengdu) Co. Ltd (“Yubo Global) · A 100% owned by Platinum HK |
Schedule of assets and liabilities | March 31, 2021 December 31, 2020 Cash $ 48,278 $ 746,613 Receivables 296,049 2,316 Prepaid Expenses 58,399 27,160 Inventory 82,947 67,144 Due from related parties 399,507 429,648 Property and equipment (net) 80,337 79,153 Intangible assets (net) 52,414 54,912 Operating lease right of use assets 231,264 315,207 Lease security deposits 86,255 86,811 Investment in Yubo Jingzhi (A) 228,290 - Receivables from other consolidating entities (A) 250,624 - Total assets 1,814,364 1,808,964 Accounts payable and accrued expense - 101,175 Customer deposits - 11,028 Advances from prospective customers/distributors 794,951 757,896 Due to related partis 243,556 91,951 Operating lease liabilities 231,264 315,207 Total liabilities 1,269,771 1,277,257 Shareholders' equity $ 544,593 $ 531,707 |
Schedule of straight-line basis | Leasehold improvements Remaining term of lease Air conditioning equipment 5 years Office equipment 3 years |
Schedule of expected useful lives | Distribution software 5 years Patents 20 years |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INVENTORY | |
Schedule of inventory | March 31, December 31, 2021 2020 (Unaudited) Product components raw materials: Frozen tubes to be attached to the nebulizer product $ 39,317 $ 40,499 Unassembled nebulizers 19,403 4,733 Fluids to be inserted in the frozen tubes 10,327 11,470 Total product components raw materials 69,047 56,702 Refrigerated boxes 7,455 3,310 Delivery boxes 6,445 7,132 Total Inventory $ 82,947 $ 67,144 |
DUE FROM RELATED PARTIES (Table
DUE FROM RELATED PARTIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DUE FROM RELATED PARTIES | |
Schedule of Due from related parties | March 31, December 31, 2021 2020 (Unaudited) Beijing Zhenhuikang Biotechnology Co., LTD (“Zhenhuikang”) (1) $ 399,507 $ 404,288 Yubo Global Biotechnology (Chengdu) Co., Ltd. (2) - 25,360 Total Due From Related Parties $ 399,507 $ 429,648 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
PROPERTY AND EQUIPMENT | |
Schedule of Property and equipment | March 31, December 31, 2021 2020 (Unaudited) Leasehold improvements $ 41,396 $ 44,777 Construction in progress 411,721 - Air conditioning equipment 57,241 21,496 Office equipment 29,645 22,241 Total property and equipment 540,003 88,514 Less accumulated depreciation and amortization (12,067 ) (9,361 ) Property and equipment, net $ 527,936 $ 79,153 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INTANGIBLE ASSETS | |
Schedule of Intangible assets | March 31, December 31, 2021 2020 (Unaudited) Distribution software $ 37,672 $ 37,907 Patents acquired from related party (Note 12) 21,096 21,239 Total intangible assets 58,768 59,146 Less: Accumulated amortization (6,354 ) (4,234 ) Intangible assets, net $ 52,414 $ 54,912 |
Schedule of amortization of intangible assets expense | Year ending December 31, 2021 $ 6,134 Year ending December 31, 2022 8,632 Year ending December 31, 2023 8,632 Year ending December 31, 2024 8,632 Year ending December 31, 2025 4,846 Thereafter 15,538 Total $ 52,414 |
OPERATING LEASE RIGHT OF USE _2
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY | |
Schedule of Minimum lease payments | As of March 31, 2021 Year ending December 31, 2021 $ 644,319 Year ending December 31, 2022 546,573 Year ending December 31, 2023 546,573 Year ending December 31, 2024 573,902 Year ending December 31, 2025 579,368 Thereafter 96,561 Total $ 2,987,296 |
DUE TO RELATED PARTIES (Tables)
DUE TO RELATED PARTIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DUE FROM RELATED PARTIES | |
Schedule of Due to related parties | March 31, December 31, 2021 2020 (Unaudited) Mr. Jun Wang (1) $ - - Mr. Yang Wang (2) 243,556 91,951 Total $ 243,556 91,951 |
SHAREHOLDERS EQUITY (Tables)
SHAREHOLDERS EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
SHAREHOLDERS EQUITY | |
Schedule of acquisition of Platinum | Name of Selling Shareholder Number of Exchange Shares Percentage of Exchange Shares FLYDRAGON INTERNATIONAL LIMITED (controlled by Mr. Jun Wang) 39,943,800 34.14 % CHINAONE TECHNOLOGY LIMITED (controlled by Mr. Yang Wang) 19,211,400 16.42 % BOAO BIOTECH LIMITED (controlled by Mr. Yulin Cao) 24,967,800 21.34 % FOCUS DRAW GROUP LIMITED (controlled by Ms. Lina Liu) 13,829,400 11.82 % FOCUSONE TECHNOLOGY GROUP LIMITED (controlled by Mr. Jin Wei) 11,524,500 9.85 % DRAGONCLOUD TECHNOLOGY LIMITED (Controlled by Mr. Yang Wang) 5,768,100 4.93 % CHEUNG HO SHUN 1,755,000 1.50 % TOTAL 117,000,000 100.00 % |
Schedule of ordinary shares | Entity Shares 1. Flydragon International Limited (controlled by Mr. Jun Wang) 3,466,000 2. Chinaone Technology Limited (controlled by Mr. Yang Wang) 1,667,000 3. Boao Biotech Limited (controlled by Mr. Yulin Cao) 2,167,000 4. Dragoncloud Technology Limited (controlled by Mr. Yang Wang) 500,000 5. Focus Draw Group Limited (controlled by Ms. Lina Liu) 1,200,000 6. Focusone Technology Group Limited (controlled by Mr. Jin Wei) 1,000,000 Total 10,000,000 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INCOME TAX | |
Schedule of deferred tax assets | March 31, 2021` December 31, 2020 Net operating losses carry forward $ 279,392 $ 207,227 Valuation allowance (279,392 ) (207,227 ) Deferred tax assets, net $ — $ — |
Schedule of provisions for income tax | For the three months ended March 31, 2021 For the three months ended March 31, 2020 Income tax (benefits) at 25% $ (109,669 ) $ (35,237 ) Net loss of Platinum 37,504 - Increase in valuation allowance 72,165 35,237 Provision for income taxes $ — $ — |
ORGANIZATION (Details)
ORGANIZATION (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
ORGANIZATION (Details) | |
Oral liquid health products | $ 345,607 |
Nebulizers | 116,722 |
Total | $ 462,329 |
ORGANIZATION (Details Narrative
ORGANIZATION (Details Narrative) - shares | Jan. 14, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Ownership exchange percentage, description | the Selling Stockholders, who were then stockholders of Platinum (the “Selling Stockholders”), in exchange for 100% of the issued and outstanding capital stock of Platinum (the “Exchange Transaction”). | ||
Liu Lina [Member] | |||
Cancellation of shares held by related party | 116,697,438 | ||
Exchange Agreement [Member] | Maximum [Member] | |||
Ownership percentage | 99.00% | ||
Common Stock Class B [Member] | |||
Common stock shares issued | 4,447 | 0 | |
Common stock shares outstanding | 4,447 | 0 | |
Common Class A [Member] | |||
Common stock shares issued | 117,875,323 | ||
Common stock shares outstanding | 117,875,323 | ||
Common Stock Class B [Member] | Chief Financial Officer, Treasurer and Secretary [Member] | |||
Common stock shares issued | 4,447 | ||
Common stock shares outstanding | 4,447 | ||
Common Stock Class A [Member] | |||
Common stock shares issued | 118,177,885 | 117,000,000 | |
Common stock shares outstanding | 118,177,885 | 117,000,000 | |
Common Stock Class A [Member] | Exchange Agreement [Member] | |||
Common stock shares issued | 117,000,000 | ||
Common Stock Class A [Member] | Chief Financial Officer, Treasurer and Secretary [Member] | |||
Common stock shares issued | 118,177,885 | ||
Common stock shares outstanding | 118,177,885 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details ) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Yubo International Biotech Limited [Member] | |
Name of company | A holding company |
Platinum HK [Member] | |
Name of company | A Hong Kong company |
Date of incorporation | May 4, 2020 |
Ownership percentage | 100.00% |
Platinum International Biotech Co. LTD [Member] | |
Name of company | A Cayman Island company |
Date of incorporation | Apr. 7, 2020 |
Ownership percentage | 100.00% |
Yubo Chengdu [Member] | |
Name of company | A PRC company and deemed a wholly foreign owned enterprise |
Date of incorporation | Sep. 4, 2020 |
Ownership percentage | 100.00% |
Subscribed capital | $ 1,500,000 |
Yubo Beijing [Member] | |
Name of company | A PRC limited liability company |
Date of incorporation | Jun. 14, 2016 |
Subscribed capital | $ 1,531,722 |
Voting interest equity | VIE of Yubo Chengdu WFOE |
Yubo Jingzhi [Member] | |
Name of company | A PRC company |
Date of incorporation | Jan. 21, 2021 |
Ownership percentage | 100.00% |
Yubo Global [Member] | |
Name of company | A PRC company |
Date of incorporation | Dec. 20, 2020 |
Ownership percentage | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Cash | $ 126,313 | $ 1,382,525 | ||
Receivables | 296,049 | 2,316 | ||
Prepaid Expenses | 302,573 | 27,160 | ||
Inventory | 82,947 | 67,144 | ||
Due from related parties | 399,507 | 429,648 | ||
Intangible assets (net) | 52,414 | 54,912 | ||
Operating lease right of use assets | 1,942,351 | 315,207 | ||
Lease security deposits | 177,289 | 86,811 | ||
Accounts payable and accrued expense | 0 | 101,175 | ||
Customer deposits | 0 | 11,028 | ||
Due to related partis | 243,556 | 91,951 | ||
Operating lease liabilities | 231,264 | 315,207 | ||
Total liabilities | 2,980,858 | 1,277,257 | ||
Shareholders' equity | 926,521 | 1,167,619 | $ 828,161 | $ 488,733 |
Yubo Beijing [Member] | ||||
Cash | 48,278 | 746,613 | ||
Receivables | 296,049 | 2,316 | ||
Prepaid Expenses | 58,399 | 27,160 | ||
Inventory | 82,947 | 67,144 | ||
Due from related parties | 399,507 | 429,648 | ||
Property and equipment (net) | 80,337 | 79,153 | ||
Intangible assets (net) | 52,414 | 54,912 | ||
Operating lease right of use assets | 231,264 | 315,207 | ||
Lease security deposits | 86,225 | 86,811 | ||
Investment in Yubo Jingzhi (A) | 228,290 | 0 | ||
Receivables from other consolidating entities (A) | 250,624 | 0 | ||
Total assets | 1,814,364 | 1,808,964 | ||
Accounts payable and accrued expense | 0 | 101,175 | ||
Customer deposits | 0 | 11,028 | ||
Advances from prospective customers/distributors | 794,951 | 757,896 | ||
Due to related partis | 243,556 | 91,951 | ||
Operating lease liabilities | 231,264 | 315,207 | ||
Total liabilities | 2,980,858 | 1,277,257 | ||
Shareholders' equity | $ 544,593 | $ 531,707 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - Intangible Assets [Member] | 3 Months Ended |
Mar. 31, 2021 | |
Air conditioning equipment | 5 years |
Office equipment | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - Intangible Assets [Member] | 3 Months Ended |
Mar. 31, 2021 | |
Distribution software | 5 years |
Patents | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020 | Mar. 31, 2021¥ / shares | Dec. 31, 2020¥ / shares | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Currency exchange rate per dollar | ¥ / shares | ¥ 6.5706 | ¥ 6.5286 | ||
Currency translation description | $1=6.5506 RMB | $1=7.0312 RMB | ||
Operating expenses | $ | $ 149,769 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Net operating income loss | $ 438,675 | $ 140,948 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Frozen tubes to be attached to the nebulizer product | $ 39,317 | $ 40,499 |
Unassembled nebulizers | 19,403 | 4,733 |
Fluids to be inserted in the frozen tubes | 10,327 | 11,470 |
Total product components raw materials | 69,047 | 56,702 |
Refrigerated boxes | 7,455 | 3,310 |
Delivery boxes | 6,445 | 7,132 |
Total Inventory | $ 82,947 | $ 67,144 |
DUE FROM RELATED PARTIES (Detai
DUE FROM RELATED PARTIES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beijing Zhenhuikang Biotechnology Co., LTD ("Zhenhuikang") (1) | $ 399,507 | $ 404,288 |
Yubo Global Biotechnology (Chengdu) Co., Ltd. (2) | 0 | 25,360 |
Total Due From Related Parties | $ 399,507 | $ 429,648 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Leasehold improvements | $ 41,396 | $ 44,777 |
Construction in progress | 411,721 | 0 |
Air conditioning equipment | 57,241 | 21,496 |
Office equipment | 29,645 | 22,241 |
Total property and equipment | 540,003 | 88,514 |
Less accumulated depreciation and amortization | (12,067) | (9,361) |
Property and equipment, net | $ 527,936 | $ 79,153 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Depreciation and amortization of property and equipment | $ 2,772 | $ 1,824 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
INTANGIBLE ASSETS | ||
Distribution software | $ 37,672 | $ 37,907 |
Patents acquired from related party (Note 12) | 21,096 | 21,239 |
Total intangible assets | 58,768 | 59,146 |
Less: Accumulated amortization | (6,354) | (4,234) |
Intangible assets, net | $ 52,414 | $ 54,912 |
INTANGIBLE ASSETS (Details 1)
INTANGIBLE ASSETS (Details 1) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
INTANGIBLE ASSETS | |
Year ending December 31, 2021 | $ 6,134 |
Year ending December 31, 2022 | 8,632 |
Year ending December 31, 2023 | 8,632 |
Year ending December 31, 2024 | 8,632 |
Year ending December 31, 2025 | 4,846 |
Thereafter | 15,538 |
Total amortization of intangible assets expense | $ 52,414 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
INTANGIBLE ASSETS | ||
Amortization of intangible assets expense | $ 2,154 | $ 0 |
OPERATING LEASE RIGHT OF USE _3
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY (Details) | Mar. 31, 2021USD ($) |
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY | |
Future undiscounted minimum lease payments, Year ending December 31, 2021 | $ 644,319 |
Future undiscounted minimum lease payments, Year ending December 31, 2022 | 546,573 |
Future undiscounted minimum lease payments, Year ending December 31, 2023 | 546,573 |
Future undiscounted minimum lease payments, Year ending December 31, 2024 | 573,902 |
Future undiscounted minimum lease payments, Year ending December 31, 2025 | 579,368 |
Future undiscounted minimum lease payments,Thereafter | 96,561 |
Total future undiscounted minimum lease payments | $ 2,987,296 |
OPERATING LEASE RIGHT OF USE _4
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Operating lease liabilities | $ 1,486,196 | $ 0 | |
Borrowing rate | 4.75% | ||
Occupancy expense | $ 86,555 | $ 60,257 | |
Value of the future lease payments | 2,987,296 | ||
March 1 2021 [Member] | Chengdu Liangkang Investment [Member] | |||
Current exchange rate | 7 | ||
Rent and management fees | 45,658 | ||
Payment of security deposit | $ 91,096 | ||
Lease agreement, description | Yubo Global executed a lease agreement with Chengdu Liangkang Investment Co. to rent approximately 6,960 square meters of laboratory space in Chengdu China. The lease provides for a lease term of 5 years from March 1, 2021 to February 28, 2026. | ||
August 1 2019 [Member] | Jiu Si Cheng Investment Management [Member] | |||
Current exchange rate | $ 7 | ||
Rent and management fees | 728,586 | ||
Payment of security deposit | $ 86,257 | ||
Lease agreement, description | Yubo Beijing executed a lease agreement with Jiu Si Cheng Investment Management (the “Landlord”) to rent approximately 746 square meters of office space in Beijing China. The lease provided for an initial term of 2 years and 4 months from August 2, 2019 to November 30, 2021 with a right to renew for an additional term of 2 years and 8 months from December 1, 2021 to July 31, 2024. |
ADVANCES FROM PROSPECTIVE CUS_2
ADVANCES FROM PROSPECTIVE CUSTOMERSDISTRIBUTORS (Details Narrative) | Mar. 31, 2021CNY (¥) |
Advances from prospective customers | ¥ 5,229,012 |
PRC Entities One [Member] | |
Advances from prospective customers | 348,000 |
PRC Entities Two [Member] | |
Advances from prospective customers | 50,000 |
PRC Entities Three [Member] | |
Advances from prospective customers | 50,000 |
PRC Entities Four [Member] | |
Advances from prospective customers | 500,000 |
PRC Entities Five [Member] | |
Advances from prospective customers | 500,000 |
PRC Entities Six [Member] | |
Advances from prospective customers | 500,000 |
PRC Entities Seven [Member] | |
Advances from prospective customers | 3,000,000 |
PRC Entities Eight [Member] | |
Advances from prospective customers | 31,012 |
PRC Entities Nine [Member] | |
Advances from prospective customers | ¥ 250,000 |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Due to related partis | $ 243,556 | $ 91,951 |
Mr. Jun Wang [Member] | ||
Due to related partis | 0 | 0 |
Mr. Yang Wang [Member] | ||
Due to related partis | $ 243,556 | $ 91,951 |
SHAREHOLDERS EQUITY (Details)
SHAREHOLDERS EQUITY (Details) - shares | Apr. 07, 2020 | Mar. 31, 2021 |
Chinaone Technology Limited [Member] | ||
Common stock shares issued | 1,667,000 | |
Number of shares selling | 19,211,400 | |
Number of shares selling percentage | 16.42% | |
FLYDRAGON INTERNATIONAL LIMITED [Member] | ||
Common stock shares issued | 3,466,000 | |
Number of shares selling | 39,943,800 | |
Number of shares selling percentage | 34.14% | |
Boao Biotech Limited [Member] | ||
Common stock shares issued | 2,167,000 | |
Number of shares selling | 24,967,800 | |
Number of shares selling percentage | 21.34% | |
Focus Draw Group Limited [Member] | ||
Common stock shares issued | 1,200,000 | |
Number of shares selling | 13,829,400 | |
Number of shares selling percentage | 11.82% | |
Dragoncloud Technology Limited [Member] | ||
Common stock shares issued | 500,000 | |
Number of shares selling | 5,768,100 | |
Number of shares selling percentage | 4.93% | |
Focusone Technology Group Limited [Member] | ||
Common stock shares issued | 1,000,000 | |
Number of shares selling | 11,524,500 | |
Number of shares selling percentage | 9.85% | |
Cheung Ho Shun [Member] | ||
Number of shares selling | 1,755,000 | |
Number of shares selling percentage | 1.50% | |
Total [Member] | ||
Common stock shares issued | 10,000,000 | |
Number of shares selling | 117,000,000 | |
Number of shares selling percentage | 100.00% |
SHAREHOLDERS EQUITY (Details Na
SHAREHOLDERS EQUITY (Details Narrative) - USD ($) | Jan. 14, 2021 | Sep. 11, 2020 | Jan. 21, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Apr. 07, 2020 |
Preferred stock, par value | $ .01 | $ .01 | ||||
Preferred shares authorized | 5,000,000 | 5,000,000 | ||||
Platinum International Biotech Co. LTD [Member] | ||||||
Common stock, outstanding | 10,152,284 | |||||
Number of shares selling | 10,152,284 | 10,000,000 | ||||
Common stock, authorized | 500,000,000 | |||||
Common stock, par value | $ 0.001 | |||||
Common shares issued | 152,284 | |||||
Common stock issued, value | $ 750,000 | |||||
Ordinary shares acquired | 10,152,284 | |||||
Shares issued during the period, shares | 117,000,000 | |||||
Yubo Chengdu [Member] | ||||||
Subscribed capital | $ 1,500,000 | |||||
Yubo Beijing [Member] | ||||||
Subscribed capital | $ 1,531,722 | |||||
Common Stock Class A [Member] | ||||||
Common stock, outstanding | 118,177,885 | 117,000,000 | ||||
Number of shares selling | 118,177,885 | 117,000,000 | ||||
Common stock, authorized | 1,000,000,000 | 1,000,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Common Stock Class A [Member] | Liu Lina [Member] | ||||||
Shares cancelled, shares | 116,697,438 | |||||
Common Stock Class B [Member] | ||||||
Common stock, outstanding | 4,447 | 0 | ||||
Number of shares selling | 4,447 | 0 | ||||
Common stock, authorized | 3,750,000 | 3,750,000 | ||||
Common stock, par value | $ .001 | $ .001 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | |
Feb. 27, 2020 | Feb. 17, 2020 | |
Entrustment Technical Service Agreement [Member] | ||
Amount payable for harvesting | $ 30,408 | |
Exchange rate | $ 6.5706 | |
Joint Research and Development [Member] | Mr. Yulin [Member] | ||
Exchange rate | $ 6.7473 | |
Ownership percentage | 18.18% | |
Amount paid for research and development expenses | $ 35,848 | |
Patent Transfer Agreement [Member] | ||
Exchange rate | $ 6.5706 | |
Consideration paid for two patents | $ 21,307 |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
INCOME TAX | ||
Net operating losses carry forward | $ 279,392 | $ 207,227 |
Valuation allowance | (279,392) | (207,227) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
INCOME TAX | ||
Income tax (benefits) | $ (109,669) | $ (35,237) |
Net loss of Platinum | 37,504 | 0 |
Increase in valuation allowance | 72,165 | 35,237 |
Provision for income taxes | $ 0 | $ 0 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2010 | |
INCOME TAX | ||||
Income tax rate | 25.00% | |||
Net losses | $ 192,087 | $ 597,713 | $ 231,193 | |
Statutory income tax rate | 16.50% | |||
Valuation allowance against deferred tax asset | 100.00% | 100.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - Website Platform Maintenance Agreement [Member] - Hainan Haifu Technology Ltd [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Website maintenance services, monthly fees | $ 22,231 | ||
Sales commissions | $ 138,349 | ||
Average rate | $ 6.7473 | ||
Cash insured deposit | $ 76,097 |