0001276531-21-000003.txt : 20210415 0001276531-21-000003.hdr.sgml : 20210415 20210415081224 ACCESSION NUMBER: 0001276531-21-000003 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 82 CONFORMED PERIOD OF REPORT: 20201231 FILED AS OF DATE: 20210415 DATE AS OF CHANGE: 20210415 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCIENTIFIC ENERGY, INC CENTRAL INDEX KEY: 0001276531 STANDARD INDUSTRIAL CLASSIFICATION: PATENT OWNERS & LESSORS [6794] IRS NUMBER: 870680657 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50559 FILM NUMBER: 21827356 BUSINESS ADDRESS: STREET 1: 27 WELDON STRRET CITY: JERSEY CITY STATE: NJ ZIP: 07306 BUSINESS PHONE: 2019858100 MAIL ADDRESS: STREET 1: 27 WELDON STRRET CITY: JERSEY CITY STATE: NJ ZIP: 07306 FORMER COMPANY: FORMER CONFORMED NAME: SCIENTIFIC ENERGY INC DATE OF NAME CHANGE: 20040115 10-K 1 scientificenergy-202010k.htm FORM 10-K, DECEMBER 31, 2020 TABLE OF CONTENTS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549  

 


 

FORM 10-K

 

x Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. 

 

For the Fiscal Year Ended December 31, 2020


¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

for The Transition Period From __________To ____________

 

Commission file number: 000-50559

 

SCIENTIFIC ENERGY, INC

(Name of registrant as specified in Its Charter)

 

Utah

 

87-0680657

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

27 Weldon StreetJersey City, New Jersey 07306

(Address of principal executive offices including zip code)

 

(852) 2530-2089

(Registrants telephone number)


Securities registered pursuant to Section 12(b) of the Act:  N/A

 

Securities registered pursuant to Section 12(g) of the Act: Common Stock, Par Value $0.01


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.         Yes ¨      No x


Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.       Yes ¨      No x


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes x     No ¨ 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files):    Yes x    No ¨ 


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrants knowledge, in




1




definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b2 of the Exchange Act.


(Check one):

Large accelerated filer

¨

 

Accelerated filer

¨

Non-accelerated filer

x

 

Smaller reporting company

x

Emerging growth company

¨

 

 

 


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act.


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes ¨       No x


State the aggregate market value of the voting and non-voting equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter: Approximately $1.60 million.


Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:   114,915,852 shares of the registrant’s common stock were outstanding as of April 15, 2021.





2




TABLE OF CONTENTS


 

ITEM

  

Page

PART I

  

  

  

 1.

Business

4

  

  

 

1A.

Risk Factors

5

  

  

 

1B.

Unresolved Staff Comments

5

  

  

 

 2.

Description of Property

5

  

  

 

 3.

Legal Proceedings

6

  

  

 

4.

Mine Safety Disclosure

6

 

 

 

PART II

  

  

  

5.

Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities

6

  

  

 

 6.

Selected Financial Data

7

  

  

 

 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

7

  

  

 

7A.

Quantitative and Qualitative Disclosures About Market Risk

10

  

  

 

 8.

Consolidated Financial Statements and Supplementary Data

F-1

  

  

 

 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

24

  

  

 

9A.

Controls and Procedures

24

  

  

 

9B.

Other Information

25

  

  

 

PART III

  

  

  

 10.

Directors, Executive Officers and Corporate Governance

25

  

  

 

 11.

Executive Compensation

27

  

  

 

 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

28

  

  

 

 13.

Certain Relationships and Related Transactions, and Director Independence

29

  

  

 

 14.

Principal Accounting Fees and Services

30

  

  

 

PART IV

  

  

  

 15.

Exhibits, Financial Statement Schedules

30

  




3







PART I

Item 1.  BUSINESS


Background


Scientific Energy, Inc. (the “Company”) was incorporated under the laws of the State of Utah on May 30, 2001. Prior to April 2006, the Company had endeavored to develop and manufacture various energy generation devices and energy efficient mechanisms.  The current business plan of the Company is to engage in a business of e-commerce platform.


In January 2008, the Company entered into a joint venture agreement with China Resources Development Group Ltd., a Hong Kong company.  Under the agreement, a joint venture company, Kabond Investments Ltd (the “JVC”), was established in Hong Kong, and the Company invested $39.6 million Hong Kong dollars (approximately $5.09 million) into the JVC for 72% of the JVC’s capital shares, and China Resources Development Group Ltd., jointly with its partner, invested $15.4 million Hong Kong dollars (approximately $1.98 million) into the JVC to receive 28% of the JVC’s capital shares.  In December 2008, all equity interest of the JVC owned by the Company was sold to a third party for $39.6 million Hong Kong dollars (approximately $5,109,743).


In January 2009, the Company through its wholly-owned subsidiary, PDI Global Limited (a British Virgin Islands corporation, “PDI”), entered into a joint venture agreement with China Resources Development Group Ltd.  Under the agreement, the Company agreed to invest $43,040,000 Hong Kong dollars (approximately $5.55 million) into a joint venture company Sinoforte Ltd. in Hong Kong (“Sinoforte”).  The Company got 80% of Sinoforte's capital shares, and China Resources invested $10,222,000 Hong Kong dollars, approximately $1,318,967, and another investor invested  $538,000 Hong Kong dollars, or approximately $69,419, into Sinoforte for 19% and 1% of Sinoforte's capital shares, respectively.  The main business of Sinoforte was trading mineral products such as graphite produced in China.  In June 2009 and September 2009, respectively, China Resources and the other minority investor cancelled their investments in Sinoforte, and the full amount of their original investments was returned.  As a result, Sinoforte became a wholly-owned subsidiary of PDI. In December 2020, PDI sold all the shares of Sinoforte to the Company at consideration of HK$10.


The Company has not been involved in any bankruptcy, receivership or similar proceeding.


Business


The Company conducts business primarily through its wholly owned subsidiary Sinoforte Ltd., a Hong Kong corporation.


Prior to August 2011, the Company operated primarily as a merchant, buying and selling various type and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite. As a merchant, the Company acted as a reseller. It purchased graphite products in bulk, primarily from graphite producers, and resold them, either in bulk or in smaller quantities (in either case, without further processing), to various small and mid-sized customers.    


In August 2011, the Company started to engage in a business of e-commerce platform.  Currently the Company is in the process of developing a website, “Makeliving.com” ("Makeliving"), which provides an e-commerce platform, where registered members can exchange goods and services.  Makeliving will act both as a platform and as a conduit between those (individuals or companies) who desire to acquire goods and services and those (individuals or companies) who desire to offer goods and services. Makeliving plans to charge a certain percentage fee for the transactions.  However, no revenues have been generated.  The activities of the website are currently suspended.


On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of Elate Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the “Joint Venture”).  Each party owns 50% equity interest in the Joint Venture respectively.


The Venture Joint, with the support of blockchain technology, is to provide global trading service of physical gold for global customers. The parties contribute their respective experiences in blockchain technology and marketing. The Company will assist the Joint Venture in exploring the North America and Europe markets, while Cityhill will focus on the Asian markets.  


Patents, trademarks, franchises, concessions, royalty agreements or labor contracts


The Company does not own any patents, trademarks, copyrights, franchises, concessions, royalty agreements, or labor contracts.


Product Research and Development


To date the Company has not conducted any product research and development. The Company does not plan to conduct any product research and development activities in the next twelve months.


Employees




4





As of December 31, 2020, the Company has one employee.  None of the Company’s employees are covered by collective bargaining agreements.  The Company believes its relationships with its employees to be satisfactory.



Item 1A.   RISK FACTORS



Risk of Health Emergencies and Market Disruption


The occurrence of widespread health emergencies could have a material adverse effect on our business and results of operations. The recent outbreak of coronavirus (“COVID-19”), which has been identified as a “pandemic”, has resulted in decreased economic activity and ongoing health concerns, which have adversely affected the broader global economy. A pandemic typically results in social distancing, travel bans and quarantine, and this may limit access to our facilities, customers, management, support staff and professional advisors. These factors, in turn, may not only impact our operations and financial conditions but also our overall ability to react timely to mitigate the impact of this event. Also, it may hamper our efforts to comply with our filing obligations with the Securities and Exchange Commission. Depending on the severity and longevity of the COVID-19 pandemic, our business and shareholders may experience a significant negative impact.



We are not required to provide the information called for in this item due to its status as a Smaller Reporting Company.



Item 1B.   UNRESOLVED STAFF COMMENTS



Not applicable.



Item 2.   DESCRIPTION OF PROPERTY


 

The Company and its subsidiaries currently lease two office spaces:


·

Jersey City, NJ office, approximately 250 square feet, on a month-by-month basis with the rent $650 per month.  


·

Hong Kong office, which is leased on a term of two years ending in January 2022. The space is approximately 770 square feet, and the rent is approximately $4,393 per month.




5





Each of the above office space is adequate for our current needs.



Item 3.   LEGAL PROCEEDINGS


We are not a party to any pending legal proceeding.  We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.



Item 4.   MINE SAFETY DISCLOSURES



Not applicable.



PART II



Item 5.   MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES



Market Information


Our common stock is quoted for trading on the OTC Pink marketplace under symbol "SCGY", and has been traded very thinly and infrequently. Accordingly, we are not including a history of reported trades in the public market through December 31, 2020.  


Holders of Our Common Stock


As of December 31, 2020, we had 114,915,852 shares of our common stock issued and outstanding, held by approximately 240 stockholders of record. The number of record holders does not include beneficial owners of common stock whose shares are held in the names of various security brokers, dealers, and registered clearing agencies.


Dividends

 

We have not paid any cash dividends to date and does not anticipate or contemplate paying dividends in the foreseeable future. We intend to retain future earnings, if any, to finance the expansion of our business, and we do not anticipate that any cash dividends will be paid in the foreseeable future. Our future payment of dividends will depend on our earnings, capital requirements, expansion plans, financial condition and other relevant factors that our board of directors may deem relevant. Our retained earnings deficit currently limits our ability to pay dividends.

 

Penny Stock

 

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a market price of less than $5.00, other than securities registered on certain national securities exchanges, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the securities laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type size and format, as the SEC shall require by rule or regulation.

 

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value of each penny stock held in the customer's account.

 

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement as to transactions involving penny stocks, and a signed and dated copy of a written suitability statement.

 

These disclosure requirements may have the effect of reducing the trading activity for our common stock should our stock ever be traded on a public market. Therefore, stockholders may have difficulty selling our securities.


Securities Authorized for Issuance under Equity Compensation Plans


We do not have any equity compensation plans.


Performance graph


Not required for smaller reporting companies.


Recent Sales of Unregistered Securities


None.


Purchases of Equity Securities by the Issuer and Affiliated Purchasers


No purchases of our equity securities were made by us or any affiliated entity during the year ended December 31, 2020.




Item 6.   SELECTED FINANCIAL DATA





6




A smaller reporting company is not required to provide the information required by this Item.



Item 7.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


This report contains certain forward-looking statements that involve risks and uncertainties.  We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. These statements are only predictions.  Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report.  Our actual results could differ materially from those anticipated in these forward-looking statements.


Overview


The Company conducts business primarily through its wholly owned subsidiary Sinoforte Ltd., a Hong Kong corporation.


Prior to August 2011, the Company operated primarily as a merchant, buying and selling various type and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite. As a merchant, the Company acted as a reseller. It purchased graphite products in bulk, primarily from graphite producers, and resold them, either in bulk or in smaller quantities (in either case, without further processing), to various small and mid-sized customers.    


In August 2011, the Company started to engage in a business of e-commerce platform.  Currently the Company is in the process of developing a website, “Makeliving.com” ("Makeliving"), which provides an e-commerce platform, where registered members can exchange goods and services.  Makeliving will act both as a platform and as a conduit between those (individuals or companies) who desire to acquire goods and services and those (individuals or companies) who desire to offer goods and services. Makeliving plans to charge a certain percentage fee for the transactions.  However, no revenues have been generated.  The activities of the website are currently suspended.


On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of Elate Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the “Joint Venture”).  Each party owns 50% equity interest in the Joint Venture respectively.


The Venture Joint, with the support of blockchain technology, is to provide global trading service of physical gold for global customers. The parties contribute their respective experiences in blockchain technology and marketing. The Company will assist the Joint Venture in exploring the North America and Europe markets, while Cityhill will focus on the Asian markets.


Results of Operations


For the Year Ended December 31, 2020 Compared to the Year Ended December 31, 2019


Sales


For the years ended December 31, 2020 and 2019, the Company generated no sales. Currently the Company is in the process of developing a website, which provides an e-commerce platform, where registered members can exchange goods and services.


Costs of Goods Sold


Cost of goods sold for the years ended December 31, 2020 and 2019 were nil because there were no sales.


Operating expenses


For the year ended December 31, 2020, the Company’s operating expenses were $472,963 compared to $523,606 for the year of 2019.  The decrease is primarily the result of lower office expenses paid towards business operations in 2020.


Other Income (Expense)


For the year ended December 31, 2020, the Company had $11,203 of interest expense, net, as compared to $7,868 of interest expense for the same period last year.  The interest expense in 2020 and 2019 is related to notes payable issued in 2018 and 2019. The Company received $22,647 of subsidy from Hong Kong government in 2020 is related to the subsidy from Hong Kong Government for the Employment Support Scheme.


Net Loss


For the year ended December 31, 2020, the Company had a net loss of $461,519, or $(0.004) per share, as compared to a net loss of $544,313, or $(0.005) per share, for the year of 2019.  


Going Concern


The Company's consolidated financial statements are prepared using U.S. GAAP applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company had a net loss of $461,519 for the year ended December 31, 2020 and had an accumulated deficit of $9,301,091 as of December 31, 2020. The Company has not yet established an adequate ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease development of operations. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities.


The Company’s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.


These factors have raised substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty


Liquidity and Capital Resources


As of December 31, 2020, the Company had cash and cash equivalents of $14,468 and a working capital deficit of $2,409,805.  For the year ended December 31, 2020, the Company used net cash of $447,682 from its operating activities primarily from our net loss of $461,519, net with depreciation of $980, a decrease in prepaid expenses of $2,800 and a decrease in deposits of $5,533 and an increase accounts payable of $4,524. By comparison, net cash used in operating activities was $520,560 in 2019.


During the year ended December 31, 2020, investing activities was $Nil as compared to $14,185 comprised of purchase of equipment of $1,346 and investment in unconsolidated entity of $12,839 in 2019.

 

During the year ended December 31, 2020, the Company’s financing activities provided net cash of $375,792, which was comprised of proceeds from issuance of notes payable of $10,936 and proceeds from common stock subscriptions of $364,856 as compared to net proceeds from financing activities of $452,683 comprised of issuance of notes payable of $123,000 and proceeds from common stock subscriptions of $329,683 received in 2019.  


Until we are able to generate sufficient liquidity from operations, we intend to continue to fund operations from cash on-hand, and through private debt or equity placements of our securities. Our continued operations will depend on whether we are able to generate sufficient liquidity from operations and/or raise additional capital through such sources as equity and debt financings, collaborative and licensing agreements and strategic alliances. There can be no assurance that additional capital will become available or, if it does, that it will become available on acceptable terms, or that any additional capital we may obtain will be sufficient to meet our long-term needs. We currently have no commitments for any additional capital, both internally and externally.


Off-Balance Sheet Arrangements


We do not have any off-balance sheet arrangements.


Contractual Obligations


The Company leases approximately 250 square feet of space in Jersey City, New Jersey under a month-by-month basis at rent of $650 per month.  In addition, the Company entered into a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 2022 with monthly payments of approximately $4,393 per month.


Critical Accounting Policies


In preparing the consolidated financial statements, we follow accounting principles generally accepted in the United States (“GAAP”).  GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, sales and expenses, and related disclosure of contingent assets and liabilities. We re-evaluate our estimates on an on-going basis.  Our estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances.  Actual results may differ from these estimates under different assumptions and conditions.  


We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently applied.  Our significant accounting policies are summarized in Note 2 to our consolidated financial statements.




Item 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK


A smaller reporting company is not required to provide the information required by this Item.

















7










Item 8.  CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA





SCIENTIFIC ENERGY, INC.

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(Stated in US Dollars)

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page

 

 

 

 

 

 

 

 

 

Report of Independent Registered Public Accounting Firm

F-1

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets at December 31, 2020 and 2019

F-2

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations and Comprehensive Losses for years ended December 31, 2020 and 2019

F-3

 

 

 

 

 

 

 

 

 

Consolidated Statements of Stockholders' Deficit for the years ended December 31, 2020 and 2019

F-4

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the years ended December 31, 2020 and 2019

F-5

 

 

Notes to Consolidated Financial Statements

F-6









 



Centurion ZD CPA & Co.

Certified Public Accountants (Practising)



Unit 1304, 13/F, Two Harbourfront, 22 Tak Fung Street, Hunghom, Hong Kong.

22 131304

Tel : (852) 2126 2388   Fax : (852) 2122 9078





 




Report of Independent Registered Public Accounting Firm


To the Board of Directors and Stockholders of Scientific Energy, Inc.


Opinion on the Financial Statements


We have audited the accompanying consolidated balance sheets of Scientific Energy, Inc and its subsidiaries (the “Company”) as of December 31, 2020 and 2019, and the related consolidated statements of operations and comprehensive losses, stockholders’ deficit and cash flows for each of the two years in the period ended December 31, 2020 and 2019, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019 , and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2020 and 2019 in conformity with accounting principles generally accepted in the United States of America.


The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the consolidated financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.


Basis for Opinion


These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.


We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.


Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.








 



Centurion ZD CPA & Co.

Certified Public Accountants (Practising)



Unit 1304, 13/F, Two Harbourfront, 22 Tak Fung Street, Hunghom, Hong Kong.

22 131304

Tel : (852) 2126 2388   Fax : (852) 2122 9078





 




Critical Audit Matters


Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.



/s/ Centurion ZD CPA & Co

Centurion ZD CPA & Co. (as successor to Centurion ZD CPA Ltd.)

Hong Kong

April 13, 2021


We have served as the Company's auditor since 2014.











SCIENTIFIC ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2020 AND 2019

 

 

 

 

2020

2019

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

 $                    14,468

 $                         84,629

Prepaid expense and other receivables

                                -   

                              2,800

  Total current assets

                        14,468

                            87,429

 

 

 

Non-current assets:

 

 

Property, plant and equipment, net

                             854

                              1,834

Operating lease right to use assets

                        50,786

                            13,724

Deposits

                        14,743

                            20,276

  Total non-current assets

                        66,383

                            35,834

 

 

 

Total assets

 $                    80,851

 $                       123,263

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

Current liabilities:

 

 

Accounts payable and accrued expenses

 $               1,164,395

 $                   1,159,871

Operating lease liabilities

                        50,786

                            13,724

Note payable

                     233,936

                          223,000

Stock subscription payables

                  1,041,539

                          676,683

  Total current liabilities

                  2,490,656

                       2,073,278

 

 

 

Commitments and contingencies (Note 12)

                                -   

                                     -   

 

 

 

Stockholders' deficit:

 

 

Preferred stock: par value $0.01 per share; 25,000,000 shares authorized, none issued and outstanding

                                -   

                                     -   

Common stock: par value $0.01 per share, 500,000,000 shares authorized, 114,915,852 shares issued and outstanding as of December 31, 2020 and 2019

                  1,149,159

                       1,149,159

Additional paid in capital

                  5,734,030

                       5,734,030

Accumulated deficit

                (9,301,091)

                     (8,839,572)

Accumulated other comprehensive income

                          8,097

                              6,368

  Total stockholders' deficit

                (2,409,805)

                     (1,950,015)

 

 

 

Total liabilities and stockholders' deficit

 $                    80,851

 $                       123,263

 

 

 

See the accompanying notes to the consolidated financial statements










F- 2













SCIENTIFIC ENERGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

 

 

 

 

For the Years Ended December 31,

 

2020

2019

REVENUE

 $                             -   

 $                         -   

COST OF REVENUE

                                -   

                            -   

  GROSS PROFIT

                                -   

                            -   

 

 

 

OPERATING EXPENSES:

 

 

Selling, general and administrative expenses

                     471,983

                 522,831

Depreciation

                             980

                         775

  Total operating expenses

                     472,963

                 523,606

 

 

 

NET LOSS FROM OPERATIONS

                   (472,963)

               (523,606)

 

 

 

Other income (expense):

 

 

Sundry (expense) income, net

22,647

-

Share of (expense) income from unconsolidated entities

                                -   

                 (12,839)

Interest (expense) income, net

                      (11,203)

                   (7,868)

 

 

 

Net loss before provision for income taxes

                   (461,519)

               (544,313)

 

 

 

Income taxes

                                -   

                            -   

 

 

 

NET LOSS

 $                (461,519)

 $            (544,313)

 

 

 

OTHER COMPREHENIVE LOSS:

 

 

Foreign translation gain (loss)

                          1,729

                   13,650

 

 

 

Comprehensive loss

 $                (459,790)

 $            (530,663)

 

 

 

Net loss per common share, basic and diluted

 $                     (0.004)

 $                (0.005)

 

 

 

Weighted average common shares outstanding, basic and diluted

              114,915,852

         114,915,852

 

 

 

See the accompanying notes to the consolidated financial statements









F-3













SCIENTIFIC ENERGY, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT

YEARS ENDED DECEMBER 31, 2020 AND 2019

 

 

 

 

 

 

 

 

 

 

Additional

 

Other

 

 

Common stock

Paid in

Accumulated

Comprehensive

 

 

Shares

Amount

Capital

Deficit

Income (loss)

Total

Balance, December 31, 2018

        114,915,852

 $       1,149,159

 $        5,734,030

 $       (8,295,259)

 $             (7,282)

 $       (1,419,352)

 

 

 

 

 

 

 

Foreign currency transaction income

                          -   

                         -   

                         -   

                          -   

                13,650

                 13,650

 

 

 

 

 

 

 

Net loss

                          -   

                         -   

                         -   

             (544,313)

                         -   

             (544,313)

Balance, December 31, 2019

        114,915,852

          1,149,159

           5,734,030

          (8,839,572)

                  6,368

          (1,950,015)

 

 

 

 

 

 

 

Foreign currency transaction income

                          -   

                         -   

                         -   

                          -   

                  1,729

                    1,729

 

 

 

 

 

 

 

Net loss

                          -   

                         -   

                         -   

             (461,519)

                         -   

             (461,519)

 

 

 

 

 

 

 

Balance, December 31, 2020

        114,915,852

 $       1,149,159

 $        5,734,030

 $       (9,301,091)

 $               8,097

 $       (2,409,805)


See the accompanying notes to the consolidated financial statement




F-4










SCIENTIFIC ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

Year ended December 31,

 

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

Net loss

 $              (461,519)

 $                    (544,313)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

Depreciation

                           980

                                 775

Share of expense from unconsolidated entities

                              -   

                            12,839

Deposits

                        5,533

                                 (12)

Prepaid expenses and other receivables

                        2,800

                              4,287

Accounts payable and accrued expenses

                     4,524

                              5,864

 Net cash used in operating activities

                 (447,682)

                       (520,560)

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

Investments in unconsolidated entities

                              -   

                          (12,839)

Purchase of equipment

                              -   

                            (1,346)

  Net cash used in investing activities

                              -   

                          (14,185)

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

Proceeds from notes payable

                              10,936   

                         123,000

Proceeds from subscription received

                   364,856

                         329,683

  Net cash provided by financing activities

                   375,792

                         452,683

 

 

 

Effect of currency rate changes on cash

                        1,729

                            13,650

 

 

 

Net decrease in cash and cash equivalents

                   (70,161)

                          (68,412)

Cash and cash equivalents, beginning of period

                     84,629

                         153,041

 

 

 

Cash and cash equivalents, end of period

 $                  14,468

 $                        84,629

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

Interest paid, net

 $                  11,203

 $                           7,868

Income taxes paid

 $                           -   

 $                                 -   

 

 

 

Non cash financing activities:

 

 

Record right to use assets upon adoption of ASC 842

 $                  50,786

 $                        13,724

Record lease liabilities upon adoption of ASC 842

 $                  50,786

 $                        13,724

 

 

 

See the accompanying notes to the consolidated financial statements










F-5









SCIENTIFIC ENERGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2020


NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES


Scientific Energy, Inc., (the "Company") was incorporated under the laws of the State of Utah on May 30, 2001.  Prior to August 2011, the Company was principally devoted to the buying and selling of various types and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite.   In August 2011, the Company decided to engage in a business of e-commerce platform. Currently the Company is in the process of developing a website, which provides an e-commerce platform, where registered members can exchange goods and services.


On March 28, 2006, the Company set up a wholly owned subsidiary, PDI Global Limited (“PDI”), which was incorporated in the British Virgin Islands in order to engage in a business of e-commerce platform.


In January 2008, the Company entered into a joint venture agreement with China Resources Development Group Ltd., a Hong Kong company.  Under the agreement, a joint venture company, Kabond Investments Ltd (the “JVC”), was established in Hong Kong, and the Company invested $39.6 million Hong Kong dollars (approximately $5.09 million) into the JVC for 72% of the JVC’s capital shares, and China Resources Development Group Ltd., jointly with its partner, invested $15.4 million Hong Kong dollars (approximately $1.98 million) into the JVC to receive 28% of the JVC’s capital shares.  In December 2008, all equity interest of the JVC owned by the Company was sold to a third party for $39.6 million Hong Kong dollars (approximately $5,109,743).


In January 2009, the Company through its wholly-owned subsidiary, PDI, entered into a joint venture agreement with China Resources Development Group Ltd.  Under the agreement, the Company agreed to invest $43,040,000 Hong Kong dollars (approximately $5.55 million) into a joint venture company Sinoforte Ltd. in Hong Kong (“Sinoforte”).  The Company got 80% of Sinoforte's capital shares, and China Resources invested $10,222,000 Hong Kong dollars, approximately $1,318,967, and another investor invested $538,000 Hong Kong dollars, or approximately $69,419, into Sinoforte for 19% and 1% of Sinoforte's capital shares, respectively.  The main business of Sinoforte was trading mineral products such as graphite produced in China.  In June 2009 and September 2009, respectively, China Resources and the other minority investor cancelled their investments in Sinoforte, and the full amount of their original investments was returned.  As a result, Sinoforte became a wholly-owned subsidiary of PDI. On December 8, 2020, PDI sold all the shares of Sinoforte to the Company at consideration of HK$10.


On February 28, 2012, the Company set up a wholly-owned subsidiary, Makeliving Ltd., which was incorporated in the Cayman Islands in order to engage in a business of e-commerce platform.


On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of South Sea Petroleum Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the “Joint Venture”).  Each party owns 50% equity interest in the Joint Venture respectively.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Basis of Presentation


The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year.


The Company's consolidated financial statements are prepared using the generally accepted accounting principles 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 generated significant revenues since 2011 and is unlikely to generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from shareholders.


The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its 100% owned subsidiaries, Makeliving, Ltd., PDI and Sinoforte.  


All significant intercompany transactions and balances have been eliminated in consolidation.


Revenue Recognition


The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded.


The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.


Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable.


The Company is exploring web based e-commerce to bring buyers and sellers together recognizing revenue as commissions on closed transactions.


Segment information


ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance.  All sales and substantial assets of the Company are in China. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10.  The information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment.


Use of Estimates


The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.


Concentration of Credit Risk


The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.  Generally, the Company’s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management.


As of December 31, 2020, and December 31, 2019, the Company maintained Nil and $51,372 in foreign bank accounts not subject to FDIC coverage


The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.


Cash and Cash Equivalents


For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks.


Comprehensive Income (Loss)


The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (“ASC 220-10”) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources.  It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments.


Foreign Currency Translation


The Company translates the foreign currency consolidated financial statements into US Dollars (“USD”) using the year or reporting period-end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”).  Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date.  Revenues and expenses are translated at average rates in effect for the periods presented.


The consolidated financial statements were presented in US Dollars except as other specified.


The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders’ equity (deficit).  Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.


The exchange rates used to translate amounts in HKD into US Dollars for the purposes of preparing the consolidated financial statements were as follows:

 

 

 

 

 

 

 

December 31, 2020

 

December 31, 2019

Exchange rate on balance sheet dates

 

 

 

 

USD : HKD exchange rate

 

7.7536

 

7.7889

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2020

 

Year Ended December 31, 2019

Average exchange rate for the period

 

 

 

 

USD : HKD exchange rate

 

7.7561

 

7.8350


Property, plant and equipment


The estimated useful lives of property, plant and equipment are as follows:

 

 

 

 

 

 

 

Office equipment

 

3 years

 

Furniture and fixtures

 

3 years

 

Vehicles

 

4 years

 


The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value.  The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value.  Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved.


Fair Value Measurements


ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:


Level 1 —

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 —

Other inputs that is directly or indirectly observable in the marketplace.

 

 

 

Level 3 —

Unobservable inputs which are supported by little or no market activity.

 

 

 


The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.


Earnings (Loss) Per Share


Earnings Per Share (‘EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  


The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period.  The Company has no stock options, warrants or other potentially dilutive instruments outstanding at December 31, 2020 and 2019.


Investment in Unconsolidated Joint Ventures


The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Company’s investment in joint venture is accounted for using the equity method.


Lease liabilities


In adopting ASC Topic 842, Leases (Topic 842), the Company has elected the ‘package of practical expedients’, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company.  In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less.  In determining the length of the lease term to its long-term lease, the Company determined it did not have an option to extend either lease.  


Recent Accounting Pronouncements


In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of this standard on its financial statements and related disclosures.


In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The Company did not modify any material contracts due to reference rate reform during fiscal 2020. The Company will continue to evaluate the impact this guidance will have on financial statements for all future transactions affected by reference rate reform during the time permitted.


In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). The FASB issued this update as part of its initiative to reduce complexity in accounting standards. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also improve consistent application of other areas by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company in fiscal 2022 and early adoption is permitted. Certain amendments of this ASU may be adopted on a retrospective basis, modified retrospective basis or prospective basis. The Company is currently evaluating the impact this guidance will have on its financial statements.  

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes ASC 326, Financial Instruments - Credit Losses. The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC 326. This ASU provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company is currently evaluating the impact this guidance will have on its financial statements. The adoption of this standard did not have a material impact on its consolidated financial statements.


In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"), which updates the standard to remove disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The Company is currently evaluating the impact of adoption of this new standard and does not believe that the adoption of this ASU will have a significant impact on its financial statements.


In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements, which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842, Leases (“ASC 842”). ASC 842 supersedes the lease accounting requirements in ASC 840, Leases (“ASC 840”). ASC 842 establishes a right-of-use model that requires a lessee to record a right-of-use (“ROU”) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures around the amount, timing and uncertainty of cash flows arising from leases. The Company adopted the new standard since January 1, 2019.


Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.


NOTE 3 – GOING CONCERN


As shown in the accompanying consolidated financial statements, the Company has generated a net loss of $461,519 and an accumulated deficit of $9,301,091 as of December 31, 2020. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholders. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities.


The Company’s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.


These factors have raised substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.










NOTE 4 – PROPERTY, PLANT AND EQUIPMENT


Furniture and equipment as of December 31, 2020 and 2019 is summarized as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Office furniture and  fixtures

 

$

679

 

 

$

678

 

Office equipment

 

 

9,968

 

 

 

9,952

 

Vehicles

 

 

165,267

 

 

 

164,519

 

Less:  accumulated depreciation

 

 

(175,060

)

 

 

(173,315

)

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net 

 

$

854

 

 

$

1,834

 

 

Depreciation expense for the years ended December 31, 2020 and 2019 was $980 and $775, respectively.


NOTE 5 – RIGHT TO USE ASSETS AND LEASE LIABILITY


Effective June 1, 2018, the Company entered into a two-year lease for approximately 250 square feet in New York City, New York, expiring May 31, 2020 with monthly payments of $2,800 per month.  In addition, the Company entered into a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 10, 2022, with monthly payments of approximately $4,418 per month.


At lease commencement dates, the Company estimated the lease liability and the right of use assets at present value using the Company’s estimated incremental borrowing rate of 8% and determined the initial present value, at inception, of $160,653.  On January 1, 2019, upon adoption of ASC Topic 842, the Company recorded right to use assets (net) of $95,111 and lease liability of $95,111.


Right to use assets is summarized below:













 

 

December 31, 2020

 

 

December 31, 2019

 

New York

$

62,322

 

 

$

62,322

 

Hong Kong

 

98,331

 

 

 

97,918

 

Subtotal

 

160,653

 

 

 

160,240

 

Less accumulated depreciation

 

(109,867)

 

 

 

(146,516

)

Right to use assets, net

$

50,786

 

 

$

13,724

 


During the year ended December 31, 2020 and 2019, the Company recorded $84,926 and $81,066 as lease expense to current period operations.


Lease liability is summarized below:


 

 

December 31, 2020

 

December 31, 2019

 

New York

$

-

 

$

13,724

 

Hong Kong

 

50,786

 

 

-

 

Total lease liability

 

50,786

 

 

13,724

 

Less: short term portion

 

(50,786)

 

 

(13,724

)

Long term portion

$

-

 

$

-

 


Maturity analysis under these lease agreements are as follows:

 

Year ended December 31, 2020

$

53,014

 

 

$

14,000

 

Less:  Present value discount

 

(2,228)

 

 

 

(276

)

Lease liability

$

50,786

 

 

$

13,724

 


Lease expense for the year ended December 31, 2020 was comprised of the following:


Operating lease expense

 

$

67,014

 

Short-term lease expense

 

 

23,272

 

 

 

$

90,286

 


Lease expense for the year ended December 31, 2019 was comprised of the following:


Operating lease expense

 

$

65,457

 

Short-term lease expense

 

 

15,609

 

 

 

$

81,066

 



NOTE 6 – NOTE PAYABLE


In May 2018, the Company issued an unsecured note payable for $35,000 bearing interest at 5.0% per annum, payable monthly and due on July 1, 2019.  The Company entered into an Extension Agreement in order to extend the due date of the note payable for all outstanding principal and accrued and unpaid interest due to November 18, 2020.


In November 2018, the Company issued an unsecured note payable for $65,000 bearing interest at 5.0% per annum, payable monthly and due on November 18, 2020.  


In July 2019, the Company issued an unsecured note payable for $123,000 bearing interest at 5.0% per annum, payable monthly and due on July 9, 2021.  


In November 2020, upon maturity of the May 2018 and November 2018 unsecured notes in aggregate of $100,000, the Company issued an unsecured note payable of $110,936 as payment of the maturing notes payable and accrued interest of $10,936.  The note payable bears interest of 5% and is due on December 31, 2022.  


The above accrued interests are included in accrued expenses and payable on the maturity date.


NOTE 7 – STOCK SUBCRIPTION PAYABLES


During the year ended December 31, 2020 and 2019, the Company received deposits of $364,856 (HK$2,843,558) and $329,683 (HK$2,586,422) respectively, from non-related parties with intentions to purchase the Company’s common stock.  However, the transactions have not yet completed and therefore has been classified outside of equity for financial statement presentation. The deposits received are non-interest bearing and due on demand, if the transaction does not consummate.


NOTE 8 – CAPITAL STOCK


The Company is authorized to issue 500,000,000 shares of common stock, $0.01 par value, and 25,000,000 shares of preferred stock, $0.01 par value.  As of December 31, 2020, and 2019, there were 114,915,852 shares of the Company’s common stock issued and outstanding, and none of the preferred shares were issued and outstanding.


As of December 31, 2020, Kelton Capital Group Ltd. owned 31,190,500 shares or 27.2% of the Company’s common stock, and Aspect Group Limited owned 20,000,000 shares, or 17.4% of the Company’s common stock. Other than Kelton Capital Group Ltd and Aspect Group Ltd, no person owns 5% or more of the Company’s issued and outstanding shares.



NOTE 9 – LOSS PER SHARE


The following table sets forth the computation of basic and diluted loss per common share for the year ended December 31, 2020 and 2019, respectively:


Schedule of Loss Per Share


 

 

For the Years Ended December 31,

 

 

 

  

2020

  

2019

 

 

     Numerator - basic and diluted

  

 

 

  

 

 

 

 

            Net loss

  

$

(461,519)

 

$

(544,313)

 

 

     Denominator

  

 

 

  

 

 

 

 

            Weighted average number of common shares outstanding —basic and diluted

  

 

114,915,852

  

 

114,915,852

 

 

     Loss per common share — basic and diluted

  

$

(0.004)

 

$

(0.005)

 

 

 

  

 

 

  

 

 

 

 


NOTE 10 - INCOME TAXES


The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns.  Under this method, deferred tax liabilities and assets are determined based on the difference between consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant.


For the year ended December 31, 2020, the Company's realized net taxable income which offset existing deferred tax assets relating to net operating losses, was offset further (100%) by the valuation allowance.  Other temporary differences are expected to be immaterial. Therefore there were no expected income taxes, either current or deferred, reflected in the income statement.


At December 31, 2020, the Company has available for U.S. federal income tax purposes a net operating loss carryforward of approximately $5,720,000, expiring within 20 years, that may be used to offset future taxable income. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that the benefits will not be realized.  

 

Due to possible significant changes in the Company's ownership, the future use of its existing net operating losses may be limited. Components of deferred tax assets as of December 31, 2020 are as follows. All or a portion of the remaining valuation allowance may be reduced in future years based on an assessment of earnings sufficient to fully utilize these potential tax benefits.  


The Company and its subsidiaries file separate income tax returns.

 

The United States of America

 

Scientific Energy, Inc. is incorporated in the State of Utah in the U.S., and is subject to a gradual U.S. federal corporate income tax of 21%. The State of Utah does not impose any corporate state income tax. As of December 31, 2020, future net operation losses of approximately $0.10 million are available to offset future operating income through 2040.

 

British Virgin Islands

 

PDI Global Limited and Makeliving Limited are incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, PDI Global Limited and Makeliving Limited are not subjected to tax on income or capital gains.


Hong Kong


Sinoforte Limited is incorporated in Hong Kong and Hong Kong’s profits tax rate is 8.25% for the first HK$2 million of profits of qualifying corporations, and profits above HK$2 million will be taxed at 16.5%. Sinoforte Limited did not earn any income that was derived in Hong Kong for the years ended December 31, 2020 and 2019, and therefore, Sinoforte Limited was not subjected to Hong Kong profits tax.


At December 31, 2020 and 2019, the significant components of the deferred tax (assets) liabilities are summarized below:


Schedule of Income Taxes


Deferred Tax Assets:

 

December 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss carryforward

$

(461,519)

 

$

(531,474)

Inventory obsolescence

 

-

 

 

-

 

 

 

 

 

 

Total deferred tax assets

 

(461,519)

 

 

(531,474)

Valuation allowance

 

461,519

 

 

531,474

Net deferred tax assets

$

-

 

$

-


The Company is subject to income tax holidays with respect to its Asian operations, and accordingly has recognized no provision for foreign income taxes.


Rate Reconciliation:

 

December 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Book losses (worldwide) at federal statutory rate (21%)

$

       25,772

 

$

25,995

Hong Kong Profit Tax rate (8.25%)

 

       27,951

 

 

33,634

Change in valuation allowance

 

(53,723)

 

 

(59,629)

Net expense (benefit)

$

-

 

$

-


The net deferred tax asset generated by the U.S. loss carry-forward has been fully reserved.


The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.  During the years ended December 31, 2020 and 2019, the Company recognized no interest and penalties.   The Company had no accruals for interest and penalties at December 31, 2020 and 2019.  Tax years from 2015 through 2020 are open to examination by the taxing authorities.


NOTE 11 - JOINT VENTURE


Gold Gold Gold Limited (“JV”) was created in February 2018. The Company entered into a JV agreement with primary activity of trading of gold. The Company injected $12,839 (HK$100,000) to the JV during the year. The Company shared the operating loss from JV of $12,839 during 2019.


Summarized financial information for joint venture is as follows:


Balance Sheets:

 

December 31, 2020

 

December 31, 2019

 

Property, plant and equipment, net

 

$

4,797

 

$

-

 

Account receivables

 

 

-

 

 

406,412

 

Other receivables and prepaid

 

 

8,938

 

 

-

 

Inventory

 

 

496,015

 

 

259,051

 

Cash and cash equivalents

 

 

402,880

 

 

957,207

 

Total assets

 

 

912,630

 

 

1,622,670

 

 

 

 

 

 

 

 

 

Other payable

 

 

(3,286,343

)

 

(1,370,019

)

Customer deposits and other

 

 

(627,966

)

 

(2,169,378

)

Total liabilities

 

 

(3,914,309

)

 

(3,539,397

)

 

 

 

 

 

 

 

 

Net liabilities

 

$

(3,001,679

)

$

(1,916,727


Statement of Operations:

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Revenue

$

430,423

 

 

$

-

 

Cost of sale

 

(314,009)

 

 

 

-

 

Gross profit

 

116,414

 

 

 

-

 

Operating expense

 

(1,069,664

)

 

 

(1,933,051

)

Net loss from operations

 

(953,250)

 

 

 

(1,933,051

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Interest (expense) income, net

 

(122,638)

 

 

 

2,089

 

Net loss

$

(1,075,888

)

 

$

(1,930,962



NOTE 12 - COMMITMENTS AND CONTINGENCIES


Capital commitment


As of December 31, 2020, and 2019, no capital commitment was expected.


Legal Proceeding


As of December 31, 2020, the Company is not aware of any material outstanding claim and litigation against them.



NOTE 13 - SUBSEQUENT EVENTS


In accordance with ASC 855, “Subsequent Events,” the Company has evaluated subsequent events through the date of filing. The Company acquired an entire Hong Kong company on February 8, 2021 and disposed of PDI on March 24, 2021.  No other material subsequent events were noted.



Item 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE


None.



Item 9A.   CONTROLS AND PROCEDURES


(a) Evaluation of disclosure controls and procedures. 


Our management, under the supervision and with the participation of our principal executive officer and principal financial officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2020.  Based on that evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.


As used herein, the term “disclosure controls and procedures” means controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the rules and forms issued by the SEC.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers and its principal financial officer or officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.


 (b) Management’s report on internal control over financial reporting


The management, including our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal controls over our financial reporting. 


The term internal control over financial reporting is defined as a process designed by, or under the supervision of, the issuer's principal executive and principal financial officers, or persons performing similar functions, and effected by the issuer's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:


(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer;


(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and


(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer's assets that could have a material effect on the consolidated financial statements.


To evaluate the effectiveness of our internal controls over financial reporting, we have adopted the framework prescribed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO-1992) and the related guidance provided in Internal Control Over Financial Reporting — Guidance for Smaller Public Companies, also issued by COSO.

 

Based on our evaluation of our internal controls as of December 31, 2020, our principal executive officer and principal financial officer concluded that our internal controls over financial reporting were effective.


(c) Attestation Report of the Registered Public Accounting Firm


This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit us to provide only management’s report in this annual report.


(d) Changes in internal controls over financial reporting


There were no changes in our internal control over financial reporting that occurred during the fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



Item 9B.   OTHER INFORMATION


None.



PART III



Item 10.   DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE


Directors and Executive Officers


The following table sets forth the information about our sole director and executive officer:


 

 

 

Name

Age

Positions Held

 

 

 

Stanley Chan

66

President, Chief Executive Officer, Chief Financial Officer, Secretary and Director





Mr. Stanley Chan has been a Director, Chief Executive Officer, Chief Financial Officer, Secretary, and Chairman of the Company since May 2006.  Mr. Chan has more than ten years of experience in import-export business and financial investment.


Significant Employees


There are no significant employees other than our executive officer.


Family Relationships


None of our directors, executive officers, or key employees is related by blood, marriage, or adoption to any other director, executive officer, or other key employees.  To our knowledge, there are no arrangements or understanding between any of our officers and any other person, including directors, pursuant to which the officer was selected to serve as an officer.


Section 16(a) Beneficial Ownership Reporting Compliance


Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our directors and officers, and persons who own more than ten percent of our common stock, to file with the SEC initial reports of ownership and reports of changes in ownership of our common stock.  To our knowledge, based solely on a review of the copies of such reports furnished to us, during the fiscal year ended December 31, 2020, we believe that all filing requirements applicable to our officers, directors and greater than ten percent stockholders were complied with for the fiscal year ended December 31, 2020.


Committees of the Board of Directors

 

The Company’s current bylaws require the Board of Directors to have at least three directors. The current Board is composed of one Director. Accordingly, the Company currently does not have standing Nominating, Compensation or Audit Committees, or committees performing similar functions. Nor do we have a written Nominating, Compensation or Audit committee charter. Since there is only one director, our Board of Directors does not believe that it is necessary to set up such committees because it believes that the functions of such committees are being adequately performed by the board of directors and these committees would be the same with one board member in any case.


The Company intends to seek qualified independent directors to serve on the board and ultimately form standing audit, nominating and compensation committees.


Classification of Directors; Board Vacancies


The holders of a majority of the outstanding shares of the Company’s common stock have approved an amendment to the Company’s Articles of Incorporation which provides for the division of our Board of Directors into three classes, each class consisting, as nearly as possible, of one-third of the total number of directors, with each class having a three-year term. Vacancies on the Board of Directors may be filled only by persons elected by a majority of the remaining directors. A director elected by the Board of Directors to fill a vacancy shall serve for the remainder of the full term of the class of directors in which the vacancy occurred and until such director’s successor is elected and qualified.


Director and Nominee Qualifications


The Board of Directors is responsible for identifying individuals qualified to become Board members and recommending to the Board director nominees for the next annual meeting of stockholders and









candidates to fill vacancies on the Board. Additionally, in selecting nominees for directors, the Board will review candidates recommended by stockholders using the same general criteria as other candidates.


There has not been any defined policy or procedure requirements for stockholders to submit recommendations or nomination for directors. There are no specific, minimum qualifications that the board of directors believes must be met by a candidate recommended by the board of directors. The entire board of directors will assess candidates, whether submitted by management or stockholders, and make recommendations for election or appointment.  


At the 2010 Annual Stockholder’s Meeting, the stockholders approved an amendment to the Company’s Articles of Incorporation providing for the classification of the Company’s Board of Directors into three classes, designated Class I, Class II, and Class III, with staggered three-year terms of office.


Audit Committee Financial Expert


The Company’s board of directors determined that the Company does not have a board member that qualifies as an "audit committee financial expert" as defined in Item 407(d)(5)(i) of Regulation S-K, nor do we have a board member that qualifies as "independent" as the term is used in Item 7(d)(3)(iv)(B) of Schedule 14A under the Securities Exchange Act of 1934, as amended.  The Company believes that, from his business experience in overseeing or assessing the performance of companies, Mr. Stanley Chan is capable of analyzing and evaluating our consolidated financial statements and understanding internal controls and procedures for financial reporting.  The Company believes that retaining an independent director who would qualify as an "audit committee financial expert" would be overly costly and burdensome and is not currently warranted. The Company does intend to seek qualified audit committee financial experts.


Director Independence


The Company is presently not required to comply with the director independence requirements of any securities exchange, which requires that a majority of a company's directors be independent. The board of directors of the Company intends to appoint additional members, each of whom will satisfy the director independence guidelines in a manner consistent with the definitions of “independence” set forth in SEC Rule 10A-3 under the Securities Exchange Act of 1934, as amended.


Code of Business Conduct and Ethics


The Company has adopted a written Code of Business Conduct and Ethics, which applies to its directors, principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.  


The Code of Business Conduct and Ethics addresses, among other things, compliance with laws, rules and regulations, conflicts of interest, corporate opportunities, confidentiality, protection and use of company assets, and the reporting process for any illegal or unethical conduct.










Any waiver of the Code of Business Conduct and Ethics may only be made by the Board of Directors of the Company and will be promptly disclosed on a Form 8-K.


Compensation Interlocks and Insider Participation


There were no compensation committee or board interlocks among the members of our Board.


Legal Proceedings


Neither we, nor any of our property, are currently subject to any material legal proceedings or other regulatory proceedings, and to our knowledge no such proceedings are contemplated.



Item 11.  EXECUTIVE COMPENSATION


Executive Compensation


The following tables set forth the compensation of the Company's executive officers during the last two fiscal years:


Summary Compensation Table



  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-

Equity

 

 

Nonqualified

 

 

 

 

 

 

 

  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Incentive

 

 

Deferred

 

 

All

 

 

 

 

Name and

 

  

 

 

 

 

 

 

 

Stock

 

 

Option

 

 

Plan

 

 

Compensation

 

 

Other

 

 

 

 

Principal

 

  

 

Salary

 

 

Bonus

 

 

Awards

 

 

Awards

 

 

Compensation

 

 

Earnings

 

 

Compensation

 

 

Total

 

Position

 

Year

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

Stanley Chan

 

2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

CEO and

 

2019

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

President

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



There were no "most highly compensated executive officers" as that term is defined in Item 402(a)(2) of Regulation S-K and there were no additional individuals for whom disclosure would have been made in this table.


Director Compensation


Directors do not receive any compensation for their services as directors. The Board of Directors has the authority to fix the compensation of directors.  No amounts have been paid to, or accrued to, directors in such capacity. As of the date of this report, no guidelines for the compensation of our non-employee directors have been adopted.


Equity Compensation Plans


The Company has no equity compensation plans at present, and there have been no grants of plan-based awards made to a named executive officer in the last two completed fiscal years under any plan.


Outstanding Equity Awards at Fiscal Year-End


The Company does not have any equity incentive plans. There were no outstanding equity awards at fiscal year ended December 31, 2020, as defined by Item 402(p) of Regulation S-K.


Option Exercises and Stock Vested


We do not have any equity incentive plans. There have been no exercise of stock options, SARs and similar instruments, and no vesting of stock, including restricted stock, restricted stock units and similar instruments, during the last two completed fiscal years for each of the named executive officers.


Employment Contracts, Termination of Employment, Change-in-Control Arrangements


We do not have employment agreements in place with our executive officers and directors. There are no contracts, agreements, plans or arrangements, whether written or unwritten, that provides for payment(s) to a named executive officer at, following, or in connection with the resignation, retirement or other termination of a named executive officer, or a change in control of the Company or a change in the named executive officer's responsibilities following a change in control, with respect to each named executive officer.


Pension Benefits

 

We do not sponsor any qualified or non-qualified pension benefit plans.

 









Nonqualified Deferred Compensation

 

We do not maintain any non-qualified defined contribution or deferred compensation plans.  At this time we do not have a tax qualified defined contribution 401(k) plan in which all eligible executive officers and employees may participate.


Securities Authorized for Issuance under Equity Compensation Plans


As of the end of the most recently completed fiscal year, there were no compensation plans (including individual compensation arrangements) under which our equity securities are authorized for issuance.


Potential Conflicts of Interest of Compensation Consultants


No compensation consultants have ever been hired to advise the Company and its Board of Directors.



Item 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS



The following tables set forth certain information as of April 14, 2021, regarding (i) each person known by the Company to be the beneficial owner of more than 5% of the outstanding shares of Common Stock, (ii) each director, nominee and executive officer of the Company and (iii) all officers and directors as a group.


Security Ownership of Certain Beneficial Owners



Title of Class

Name and Address of

Beneficial Owner

Amount and Nature of Beneficial Owner (1)


Percent of Class

Common

Liang Huang (2)

c/o 27 Weldon Street

Jersey City, NJ 07306


31,261,920


27.2%

Common

Aspect Group Limited

c/o 27 Weldon Street

Jersey City, NJ 07306


20,000,000


17.4%










Notes:


 (1)  Beneficial ownership is determined in accordance with Rule 13d-3 promulgated by the Commission under the Securities Exchange Act of 1934 and generally includes voting or investment power with respect to securities.  Except as indicated, we believe each holder possesses sole voting and investment power with respect to all of the shares of voting stock owned by that holder, subject to community property laws where applicable.  In computing the number of shares beneficially owned by a holder and the percentage ownership of that holder, shares of common stock subject to options or warrants held by that holder that are currently exercisable or are exercisable within 60 days after the date of the table are deemed outstanding.  Those shares, however, are not deemed outstanding for the purpose of computing the percentage ownership of any other person or group.


(2)  Includes 31,190,500 shares held by Kelton Capital Group Limited.


Security Ownership of Management


As of April 14, 2021, no director, nominee and executive officer of the Company owned the security of the Company.


Changes in Control


There are no arrangements, known to the Company, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control of the registrant.


Securities Authorized for Issuance under Equity Compensation Plans


As of the end of the most recently completed fiscal year, there were no compensation plans (including individual compensation arrangements) under which our equity securities are authorized for issuance.


Compliance with Section 16(a) of the Exchange Act


Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our executive officers and directors, and persons who beneficially own more than 10% of our common stock, to file initial reports of ownership and reports of changes in ownership with the SEC. Executive officers, directors and greater than 10% beneficial owners are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. To the Company’s knowledge, based solely on a review of the copies of such reports furnished to the Company and written representations that no other reports were required, as of the date of this report, all Section 16(a) filing requirements applicable to its officers, directors and greater than ten percent beneficial owners are complied with.



Item 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE



Certain Related Party Transactions During the Last Two Fiscal Years

 

None.










Procedures for Approval of Transactions with Related Persons


The Company does not have a written policy relating to the approval of transactions with related persons, and any such transactions are pre-approved by our Board of Directors in accordance with applicable law. Following the Board of Director’s review of the potential transaction, it will determine whether these transactions are in, or not inconsistent with, the best interests of the Company and its stockholders, taking into consideration whether they are on terms no less favorable to the Company than those available with other parties and the related person’s interest in the transaction.


Parents


Not Applicable.


Item 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES


The following table sets forth the aggregate fees by categories specified below in connection with certain professional services rendered by, Centurion ZD CPA & Co. (as successor to Centurion ZD CPA Limited), our independent registered public accounting firms, for the periods indicated. We did not pay any other fees to our independent registered public accounting firm during the periods indicated below.

 

 

 

 

 

 

 

 

Fee Category

  

2020

  

2019

Audit Fees

  

$

45,000

  

$

45,000

Audit-Related Fees

  

 

-

  

 

-

Tax Fees

  

 

-

  

 

-

 

  

 

 

  

 

 

Total Fees

  

$

45,000

  

$

45,000

 

  

 

 

  

 

 


(1)  Audit fees represent fees for professional services provided in connection with the audit of our consolidated financial statements and review of our quarterly consolidated financial statements included in our Form 10-Q.


(2)  Audit related fees.  None.


 (3)  Tax fees.   Tax return preparation.


(4)   All other fees.   None.


(5)   Pre-Approval Policies


It is the policy of the Board of Directors of the Company to approve the engagement to render audit or non-audit services before the accountant is engaged by the Company.



PART IV



Item 15.   EXHIBITS, FINANCIAL STATEMENT SCHEDULES


No.

 

Exhibit

 

 

 

 

 

 

3.1

 

Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the registrant’s Registration Statement on Form SB-2 filed on June 2, 2004).

 

 

 

3.1(i)

 

Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.2(i) to the registrant’s Current Report on Form 8-K filed on January 4, 2011).

 

 

 

3.2

 

Bylaws (incorporated by reference to Exhibit 3.2 to the registrant’s Registration Statement on Form SB-2 filed on June 2, 2004).


10.1

 

Form of Stock Purchase Agreement dated as of May 23, 2006 (incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on May 23, 2006).

 

 

 

14.1

 

Code of Business Conduct and Ethics (incorporated by reference to Exhibit 14.1 to the registrant's Annual Report on Form 10-KSB filed on April 19, 2007).

 

 

 

21

 

List of Subsidiaries of the Company.

 

 

 

31.1

 

Rule 13a-14(a)/15d-14(a)(a) Certification of CEO and CFO

 

 

 

32.1

 

Section 1350 Certifications of CEO and CFO


101.INS

 

XBRL Instance Document

101.SCH

 

XBRL Taxonomy Extension Schema Document

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document




SIGNATURES




Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.




Date

 

SCIENTIFIC ENERGY, INC.

 

 

 

 

 

 

April 15, 2021

 

By:/s/Stanley Chan

 

 

Stanley Chan

President, Chief Executive Officer, Chief Financial Officer and Director

 

 

 



Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.













 

 

 

April 15, 2021

 

By: /s/ Stanley Chan

 

 

Stanley Chan

President, Chief Executive Officer, Chief Financial Officer and Director







EX-21 2 ex21.htm EX 21 Converted by EDGARwiz

Ex. 21



SCIENTIFIC ENERGY, INC.

SUBSIDIARIES



 




 

 

 

Subsidiary

  

Jurisdiction of Incorporation

 

  

 

Sinoforte Limited

  

Hong Kong




EX-31 3 ex31.htm EX 31 VIA EDGAR

Exhibit 31.1

CERTIFICATION

Pursuant to Rule 13a–14(a)/15d–14(a)

of the Securities Exchange Act, as amended.


I, Stanley Chan, certify that:


1.

I have reviewed this Annual Report on Form 10-K of Scientific Energy, Inc.;


2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:


(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted  accounting principles;


(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and


5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):


(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;   and


(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.




/s/ Stanley Chan

 

 

Stanley Chan

 

 

Chief Executive Officer and Chief Financial Officer

 

 

(Principal Executive Officer and Principal Financial Officer)

 

 


Date:  April 15, 2021



EX-32 4 ex32.htm EX 32 Exhibit 32


Exhibit 32.1







CERTIFICATION

Pursuant to 18 U.S.C. 1350, as adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


 

In connection with the Annual Report on Form 10-K of Scientific Energy, Inc. (the "Company") for the year ended December 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Stanley Chan, the Chief Executive Officer and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 






/s/ Stanley Chan

 

 

Stanley Chan

 

 

Chief Executive Officer and Chief Financial Officer

 

 

(Principal Executive Officer and Principal Financial Officer)

 

 


Date:  April 15, 2021




EX-101.INS 5 scgy-20201231.xml XBRL INSTANCE DOCUMENT 0001276531 --12-31 10-K true 2020-12-31 false 000-50559 SCIENTIFIC ENERGY, INC 87-0680657 27 Weldon Street Jersey City NJ 07306 Address of principal executive offices 852 2530 -2089 Registrant&#146;s telephone number No No Yes Yes Non-accelerated Filer true false false 1600000 114915852 false 2020 FY 0 2800 14468 87429 854 1834 50786 13724 14743 20276 66383 35834 80851 123263 1164395 1159871 50786 13724 233936 223000 1041539 676683 2490656 2073278 0 0 0.01 25000000 0 0 0.01 500000000 114915852 114915852 114915852 1149159 1149159 5734030 5734030 -8839572 8097 6368 -2409805 -1950015 80851 123263 0 0 0 0 0 0 471983 522831 980 775 472963 523606 -472963 -523606 22647 0 -11203 -7868 -461519 -544313 1729 13650 -459790 -530663 114915852 1149159 5734030 -8295259 -7282 -1419352 0 0 0 13650 13650 0 0 -544313 0 -544313 114915852 1149159 5734030 -8839572 6368 -1950015 0 0 0 1729 1729 0 0 -461519 0 114915852 1149159 5734030 -9301091 8097 -2409805 -461519 -544313 980 775 0 -12839 -5533 12 -2800 -4287 4524 5864 -447682 -520560 0 12839 0 1346 0 -14185 10936 123000 364856 329683 375792 452683 1729 13650 -70161 -68412 153041 14468 84629 11203 7868 0 0 50786 13724 50786 13724 <p align="justify" style='margin:0'><b>NOTE 1 &#150;&nbsp;ORGANIZATION AND PRINCIPAL ACTIVITIES</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Scientific Energy, Inc., (the &quot;Company&quot;) was incorporated under the laws of the State of Utah on May 30, 2001. &#160;Prior to August 2011, the Company was principally devoted to the buying and selling of various types and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite. &#160;&#160;In August 2011, the Company decided to engage in a business of e-commerce platform. Currently the Company is in the process of developing a website, which provides an e-commerce platform, where registered members can exchange goods and services. </p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>On March 28, 2006, the Company set up a wholly owned subsidiary, PDI Global Limited (&#147;PDI&#148;), which was incorporated in the British Virgin Islands in order to engage in a business of e-commerce platform.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In January 2008, the Company entered into a joint venture agreement with China Resources Development Group Ltd., a Hong Kong company.&#160; Under the agreement, a joint venture company, Kabond Investments Ltd (the &#147;JVC&#148;), was established in Hong Kong, and the Company invested $39.6 million Hong Kong dollars (approximately $5.09 million) into the JVC for 72% of the JVC&#146;s capital shares, and China Resources Development Group Ltd., jointly with its partner, invested $15.4 million Hong Kong dollars (approximately $1.98 million) into the JVC to receive 28% of the JVC&#146;s capital shares. &nbsp;In December 2008, all equity interest of the JVC owned by the Company was sold to a third party for $39.6 million Hong Kong dollars (approximately $5,109,743).</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In January 2009, the Company through its wholly-owned subsidiary, PDI, entered into a joint venture agreement with China Resources Development Group Ltd. &#160;Under the agreement, the Company agreed to invest $43,040,000 Hong Kong dollars (approximately $5.55 million) into a joint venture company Sinoforte Ltd. in Hong Kong (&#147;Sinoforte&#148;). &#160;The Company got 80% of Sinoforte's capital shares, and China Resources invested $10,222,000 Hong Kong dollars, approximately $1,318,967, and another investor invested $538,000 Hong Kong dollars, or approximately $69,419, into Sinoforte for 19% and 1% of Sinoforte's capital shares, respectively. &#160;The main business of Sinoforte was trading mineral products such as graphite produced in China. &#160;In June 2009 and September 2009, respectively, China Resources and the other minority investor cancelled their investments in Sinoforte, and the full amount of their original investments was returned. &#160;As a result, Sinoforte became a wholly-owned subsidiary of PDI. On December 8, 2020, PDI sold all the shares of Sinoforte to the Company at consideration of HK$10. </p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>On February 28, 2012, the Company set up a wholly-owned subsidiary, Makeliving Ltd., which was incorporated in the Cayman Islands in order to engage in a business of e-commerce platform.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of South Sea Petroleum Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the &#147;Joint Venture&#148;). &nbsp;Each party owns 50% equity interest in the Joint Venture respectively.</p> UT 2001-05-30 <p align="justify" style='margin:0'><b>NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'><b><i>Basis of Presentation</i></b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (&#147;US GAAP&#148;) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the &#147;SEC&#148;). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company's consolidated financial statements are prepared using the generally accepted accounting principles 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 generated significant revenues since 2011 and is unlikely to generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from shareholders.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its 100% owned subsidiaries, Makeliving, Ltd., PDI and Sinoforte. &#160;</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>All significant intercompany transactions and balances have been eliminated in consolidation.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'><b><i>Revenue Recognition</i></b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management&#146;s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded. </p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company is exploring web based e-commerce to bring buyers and sellers together recognizing revenue as commissions on closed transactions.</p><p align="justify" style='margin:0'>&nbsp;</p><p style='margin:0'><b><i>Segment information</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. &#160;Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. &#160;All sales and substantial assets of the Company are in China. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10. &#160;The information disclosed herein materially represents all of the financial information related to the Company&#146;s principal operating segment.</p><p style='margin:0'>&nbsp;</p><p style='margin:0'><b><i>Use of Estimates</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.</p><p style='margin:0'>&nbsp;</p><p style='margin:0'><b><i>Concentration of Credit Risk</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company&#146;s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.&#160;&#160;Generally, the Company&#146;s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management.</p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>As of December 31, 2020, and December 31, 2019, the Company maintained Nil and $51,372 in foreign bank accounts not subject to FDIC coverage</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.</p><p align="justify" style='margin:0'>&nbsp;</p><p style='margin:0'><b><i>Cash and Cash Equivalents</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks. </p><p align="justify" style='margin:0'>&nbsp;</p><p style='margin:0'><b><i>Comprehensive Income (Loss)</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (&#147;ASC 220-10&#148;) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources. &#160;It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. 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style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>December 31, 2020</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>December 31, 2019</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>Exchange rate on balance sheet dates</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>USD : HKD exchange rate</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7536</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7889</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td colspan="3" valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>Year ended December 31, 2020</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>Year Ended December 31, 2019</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>Average exchange rate for the period</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>USD : HKD exchange rate</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7561</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.8350</p></td></tr></table><p style='margin:0'>&nbsp;</p><p style='margin:0'><b><i>Property, plant and equipment</i></b></p><p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>The estimated useful lives 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bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>3 years</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Furniture and fixtures</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>3 years</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Vehicles</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>4 years</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr></table><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. &#160;The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value. &#160;The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value. &#160;Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'><b><i>Fair Value Measurements</i></b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. 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The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Company&#146;s investment in joint venture is accounted for using the equity method.</p><p style='margin:0'>&nbsp;</p><p style='margin:0'><b>Lease liabilities</b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In adopting ASC Topic 842, Leases (Topic 842), the Company has elected the &#145;package of practical expedients&#146;, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company. &nbsp;In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less. &nbsp;In determining the length of the lease term to its long-term lease, the Company determined it did not have an option to extend either lease. &nbsp;</p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'><b><i>Recent Accounting Pronouncements </i></b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In August 2020, the FASB issued ASU No. 2020-06, Debt&#151;Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging&#151;Contracts in Entity&#146;s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity&#146;s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of this standard on its financial statements and related disclosures.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In March 2020, the Financial Accounting Standards Board (&quot;FASB&quot;) issued Accounting Standards Update (&quot;ASU&quot;) ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (&quot;ASU 2020-04&quot;). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The Company did not modify any material contracts due to reference rate reform during fiscal 2020. The Company will continue to evaluate the impact this guidance will have on financial statements for all future transactions affected by reference rate reform during the time permitted.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (&quot;ASU 2019-12&quot;). The FASB issued this update as part of its initiative to reduce complexity in accounting standards. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also improve consistent application of other areas by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company in fiscal 2022 and early adoption is permitted. Certain amendments of this ASU may be adopted on a retrospective basis, modified retrospective basis or prospective basis. The Company is currently evaluating the impact this guidance will have on its financial statements.</p><p align="justify" style='margin:0'>&nbsp;</p><p style='margin:0'>In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes ASC 326, Financial Instruments - Credit Losses. The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC 326. This ASU provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company is currently evaluating the impact this guidance will have on its financial statements. The adoption of this standard did not have a material impact on its consolidated financial statements. </p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (&quot;ASU 2018-14&quot;), which updates the standard to remove disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The Company is currently evaluating the impact of adoption of this new standard and does not believe that the adoption of this ASU will have a significant impact on its financial statements.</p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements, which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842, Leases (&#147;ASC 842&#148;). ASC 842 supersedes the lease accounting requirements in ASC 840, Leases (&#147;ASC 840&#148;). ASC 842 establishes a right-of-use model that requires a lessee to record a right-of-use (&#147;ROU&#148;) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures around the amount, timing and uncertainty of cash flows arising from leases. The Company adopted the new standard since January 1, 2019.</p><p style='margin:0'>&nbsp;</p><p style='margin:0'>Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company&#146;s consolidated financial statements upon adoption.</p> <p align="justify" style='margin:0'><b><i>Basis of Presentation</i></b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (&#147;US GAAP&#148;) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the &#147;SEC&#148;). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company's consolidated financial statements are prepared using the generally accepted accounting principles 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 generated significant revenues since 2011 and is unlikely to generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from shareholders.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its 100% owned subsidiaries, Makeliving, Ltd., PDI and Sinoforte. &#160;</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>All significant intercompany transactions and balances have been eliminated in consolidation.</p> <p align="justify" style='margin:0'><b><i>Revenue Recognition</i></b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management&#146;s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded. </p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company is exploring web based e-commerce to bring buyers and sellers together recognizing revenue as commissions on closed transactions.</p> <p style='margin:0'><b><i>Segment information</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. &#160;Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. &#160;All sales and substantial assets of the Company are in China. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10. &#160;The information disclosed herein materially represents all of the financial information related to the Company&#146;s principal operating segment.</p> <p style='margin:0'><b><i>Use of Estimates</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.</p> <p style='margin:0'><b><i>Concentration of Credit Risk</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company&#146;s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.&#160;&#160;Generally, the Company&#146;s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management.</p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>As of December 31, 2020, and December 31, 2019, the Company maintained Nil and $51,372 in foreign bank accounts not subject to FDIC coverage</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.</p> 0 51372 <p style='margin:0'><b><i>Cash and Cash Equivalents</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks. </p> <p style='margin:0'><b><i>Comprehensive Income (Loss)</i></b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (&#147;ASC 220-10&#148;) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources. &#160;It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. 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style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders&#146; equity (deficit). &#160;Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The exchange rates used to translate amounts in HKD into US Dollars for the purposes of preparing the consolidated financial statements were as follows:</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>December 31, 2020</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>December 31, 2019</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>Exchange rate on balance sheet dates</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>USD : HKD exchange rate</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7536</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7889</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td colspan="3" valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>Year ended December 31, 2020</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>Year Ended December 31, 2019</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>Average exchange rate for the period</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>USD : HKD exchange rate</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7561</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.8350</p></td></tr></table> <p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>December 31, 2020</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>December 31, 2019</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>Exchange rate on balance sheet dates</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>USD : HKD exchange rate</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7536</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7889</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td colspan="3" valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>Year ended December 31, 2020</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'>Year Ended December 31, 2019</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>Average exchange rate for the period</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>USD : HKD exchange rate</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.7561</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:7.2pt;padding-right:7.2pt'><p align="center" style='margin:0'>7.8350</p></td></tr></table> 7.7536 7.7889 7.7561 7.8350 <p style='margin:0'><b><i>Property, plant and equipment</i></b></p><p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>The estimated useful lives of property, plant and equipment are as follows:</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Office equipment</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>3 years</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Furniture and fixtures</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>3 years</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Vehicles</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>4 years</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr></table><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. &#160;The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value. &#160;The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value. &#160;Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved.</p> <p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>The estimated useful lives of property, plant and equipment are as follows:</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Office equipment</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>3 years</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Furniture and fixtures</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>3 years</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Vehicles</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>4 years</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr></table> P3Y P3Y P4Y <p align="justify" style='margin:0'><b><i>Fair Value Measurements</i></b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:</p><p align="justify" style='margin:0'>&nbsp;</p><table style='border-collapse:collapse;margin-left:-0.75pt'><tr style='height:14.4pt'><td valign="top" style='width:55.65pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'><i>Level 1</i></p></td><td colspan="4" valign="top" style='width:445.5pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.</p></td></tr><tr style='height:14.4pt'><td valign="top" style='width:55.65pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'><i>Level 2</i></p></td><td valign="top" style='width:328.5pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>Other inputs that is directly or indirectly observable in the marketplace.</p></td><td valign="top" style='width:11.8pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>&nbsp;</p></td><td valign="top" style='width:11.8pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>&nbsp;</p></td><td valign="top" style='width:93.4pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>&nbsp;</p></td></tr><tr style='height:14.4pt'><td valign="top" style='width:55.65pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'><i>Level 3</i></p></td><td valign="top" style='width:328.5pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>Unobservable inputs which are supported by little or no market activity.</p></td><td valign="top" style='width:11.8pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>&nbsp;</p></td><td valign="top" style='width:11.8pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>&nbsp;</p></td><td valign="top" style='width:93.4pt;padding-left:5.4pt;padding-right:5.4pt'><p style='margin:0'>&nbsp;</p></td></tr></table><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.</p> <p align="justify" style='margin:0'><b>Earnings (Loss) Per Share</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Earnings Per Share (&#145;EPS&#148;) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. &#160;Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. &#160;</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period. &#160;The Company has no stock options, warrants or other potentially dilutive instruments outstanding at December 31, 2020 and 2019.</p> <p align="justify" style='margin:0'><b>Investment in Unconsolidated Joint Ventures</b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Company&#146;s investment in joint venture is accounted for using the equity method.</p> <p style='margin:0'><b>Lease liabilities</b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In adopting ASC Topic 842, Leases (Topic 842), the Company has elected the &#145;package of practical expedients&#146;, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company. &nbsp;In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less. &nbsp;In determining the length of the lease term to its long-term lease, the Company determined it did not have an option to extend either lease. &nbsp;</p> <p align="justify" style='margin:0'><b><i>Recent Accounting Pronouncements </i></b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In August 2020, the FASB issued ASU No. 2020-06, Debt&#151;Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging&#151;Contracts in Entity&#146;s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity&#146;s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of this standard on its financial statements and related disclosures.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In March 2020, the Financial Accounting Standards Board (&quot;FASB&quot;) issued Accounting Standards Update (&quot;ASU&quot;) ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (&quot;ASU 2020-04&quot;). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The Company did not modify any material contracts due to reference rate reform during fiscal 2020. The Company will continue to evaluate the impact this guidance will have on financial statements for all future transactions affected by reference rate reform during the time permitted.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (&quot;ASU 2019-12&quot;). The FASB issued this update as part of its initiative to reduce complexity in accounting standards. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also improve consistent application of other areas by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company in fiscal 2022 and early adoption is permitted. Certain amendments of this ASU may be adopted on a retrospective basis, modified retrospective basis or prospective basis. The Company is currently evaluating the impact this guidance will have on its financial statements.</p><p align="justify" style='margin:0'>&nbsp;</p><p style='margin:0'>In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes ASC 326, Financial Instruments - Credit Losses. The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC 326. This ASU provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company is currently evaluating the impact this guidance will have on its financial statements. The adoption of this standard did not have a material impact on its consolidated financial statements. </p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (&quot;ASU 2018-14&quot;), which updates the standard to remove disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The Company is currently evaluating the impact of adoption of this new standard and does not believe that the adoption of this ASU will have a significant impact on its financial statements.</p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements, which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842, Leases (&#147;ASC 842&#148;). ASC 842 supersedes the lease accounting requirements in ASC 840, Leases (&#147;ASC 840&#148;). ASC 842 establishes a right-of-use model that requires a lessee to record a right-of-use (&#147;ROU&#148;) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures around the amount, timing and uncertainty of cash flows arising from leases. The Company adopted the new standard since January 1, 2019.</p><p style='margin:0'>&nbsp;</p><p style='margin:0'>Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company&#146;s consolidated financial statements upon adoption.</p> <p align="justify" style='margin:0'><b>NOTE 3 &#150;&#160;GOING CONCERN</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>As shown in the accompanying consolidated financial statements, the Company has generated a net loss of $461,519 and an accumulated deficit of $9,301,091 as of December 31, 2020. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholders. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities. </p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company&#146;s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.</p><p align="justify" style='margin:0'>&nbsp;</p><p style='margin:0'>These factors have raised substantial doubt about the Company&#146;s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> -461519 -9301091 <p style='margin:0'><b>NOTE 4 &#150;&nbsp;PROPERTY, PLANT AND EQUIPMENT</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Furniture and equipment as of December 31, 2020 and 2019 is summarized as follows:</p><p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31,</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31,</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="center" style='margin:0'>2020</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="center" style='margin:0'>2019</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Office furniture and &nbsp;fixtures</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>679</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>678</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Office equipment</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>9,968</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>9,952</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Vehicles</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>165,267</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>164,519</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Less:&#160; accumulated depreciation</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="right" style='margin:0'>(175,060</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="right" style='margin:0'>(173,315</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>Property, plant and equipment, net&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>854</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>1,834</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>&#160;</p></td></tr></table><p style='margin:0'>&#160;</p><p align="justify" style='margin:0'>Depreciation expense for the years ended December 31, 2020 and 2019 was $980 and $775, respectively.</p> <p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31,</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31,</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="center" style='margin:0'>2020</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="center" style='margin:0'>2019</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Office furniture and &nbsp;fixtures</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>679</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>678</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Office equipment</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>9,968</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>9,952</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Vehicles</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>165,267</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>164,519</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Less:&#160; accumulated depreciation</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="right" style='margin:0'>(175,060</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="right" style='margin:0'>(173,315</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>Property, plant and equipment, net&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>854</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>1,834</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:2.5pt'><p style='margin:0'>&#160;</p></td></tr></table> 679 678 9968 9952 165267 164519 175060 173315 854 1834 <p style='margin:0'><b>NOTE&#160;5 &#150;&nbsp;RIGHT TO USE ASSETS AND LEASE LIABILITY</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Effective June 1, 2018, the Company entered into a two-year lease for approximately 250 square feet in New York City, New York, expiring May 31, 2020 with monthly payments of $2,800 per month. &#160;In addition, the Company entered into a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 10, 2022, with monthly payments of approximately $4,418 per month. </p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>At lease commencement dates, the Company estimated the lease liability and the right of use assets at present value using the Company&#146;s estimated incremental borrowing rate of 8% and determined the initial present value, at inception, of $160,653. &nbsp;On January 1, 2019, upon adoption of ASC Topic 842, the Company recorded right to use assets (net) of $95,111 and lease liability of $95,111.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Right to use assets is summarized below:</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'><b>December 31, 2020</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2019</b></p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>New York</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>62,322</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>62,322</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Hong Kong</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>98,331</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>97,918</p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Subtotal</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>160,653</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000'><p align="right" style='margin:0'>160,240</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Less accumulated depreciation</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(109,867)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>(146,516</p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Right to use assets, net</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>50,786</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>13,724</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td></tr></table><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>During the year ended December 31, 2020 and 2019, the Company recorded $84,926 and $81,066 as lease expense to current period operations. </p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Lease liability is summarized below:</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'><b>December 31, 2020</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2019</b></p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>New York</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>13,724</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Hong Kong</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>50,786</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Total lease liability</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>50,786</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000'><p align="right" style='margin:0'>13,724</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Less: short term portion</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(50,786)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(13,724</p></td><td valign="bottom" style='padding-bottom:2.25pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Long term portion</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&nbsp;</p></td></tr></table><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Maturity analysis under these lease agreements are as follows:</p><p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Year ended December 31, 2020</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>53,014</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>14,000</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Less: &nbsp;Present value discount</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(2,228)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:2.25pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(276</p></td><td valign="bottom" style='padding-bottom:2.25pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Lease liability</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>50,786</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>13,724</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&nbsp;</p></td></tr></table><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Lease expense for the year ended December 31, 2020 was comprised of the following:</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Operating lease expense</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>67,014</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Short-term lease expense</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>23,272</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>90,286</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td></tr></table><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Lease expense for the year ended December 31, 2019 was comprised of the following:</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Operating lease expense</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>65,457</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Short-term lease expense</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>15,609</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>81,066</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td></tr></table> 95111 95111 <p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'><b>December 31, 2020</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2019</b></p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>New York</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>62,322</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>62,322</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Hong Kong</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>98,331</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>97,918</p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Subtotal</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>160,653</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000'><p align="right" style='margin:0'>160,240</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Less accumulated depreciation</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(109,867)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>(146,516</p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Right to use assets, net</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>50,786</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>13,724</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td></tr></table> 62322 62322 98331 97918 160653 160240 -109867 -146516 50786 13724 84926 81066 <p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'><b>December 31, 2020</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2019</b></p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>New York</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>13,724</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Hong Kong</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>50,786</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" style='padding-bottom:0.75pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Total lease liability</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>50,786</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000'><p align="right" style='margin:0'>13,724</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Less: short term portion</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(50,786)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(13,724</p></td><td valign="bottom" style='padding-bottom:2.25pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Long term portion</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.75pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&nbsp;</p></td></tr></table> 0 13724 50786 0 50786 13724 -50786 -13724 0 0 <p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Year ended December 31, 2020</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>53,014</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>14,000</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Less: &nbsp;Present value discount</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(2,228)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:2.25pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(276</p></td><td valign="bottom" style='padding-bottom:2.25pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Lease liability</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>50,786</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>13,724</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&nbsp;</p></td></tr></table> 53014 14000 -2228 -276 50786 13724 <p align="justify" style='margin:0'>Lease expense for the year ended December 31, 2020 was comprised of the following:</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Operating lease expense</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>67,014</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Short-term lease expense</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>23,272</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>90,286</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td></tr></table><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Lease expense for the year ended December 31, 2019 was comprised of the following:</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Operating lease expense</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>65,457</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Short-term lease expense</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>15,609</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>81,066</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-bottom:2.25pt'><p style='margin:0'>&#160;</p></td></tr></table> 67014 23272 90286 65457 15609 81066 <p style='margin:0'><b>NOTE 6 &#150;&nbsp;NOTE PAYABLE</b></p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In May 2018, the Company issued an unsecured note payable for $35,000 bearing interest at 5.0% per annum, payable monthly and due on July 1, 2019. &#160;The Company entered into an Extension Agreement in order to extend the due date of the note payable for all outstanding principal and accrued and unpaid interest due to November 18, 2020.</p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In November 2018, the Company issued an unsecured note payable for $65,000 bearing interest at 5.0% per annum, payable monthly and due on November 18, 2020. &#160;</p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In July 2019, the Company issued an unsecured note payable for $123,000 bearing interest at 5.0% per annum, payable monthly and due on July 9, 2021. &#160;</p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In November 2020, upon maturity of the May 2018 and November 2018 unsecured notes in aggregate of $100,000, the Company issued an unsecured note payable of $110,936 as payment of the maturing notes payable and accrued interest of $10,936. &nbsp;The note payable bears interest of 5% and is due on December 31, 2022. &nbsp;</p><p style='margin:0'>&nbsp;</p><p style='margin:0'>The above accrued interests are included in accrued expenses and payable on the maturity date.</p> Company unsecured note payable 35000 0.0500 payable monthly 2019-07-01 Company unsecured note payable 65000 0.0500 payable monthly 2020-11-18 Company unsecured note payable 123000 0.0500 payable monthly 2021-07-09 Company unsecured note payable 110936 0.0500 2022-12-31 <p style='margin:0'><b>NOTE 7 &#150;&nbsp;STOCK SUBCRIPTION PAYABLES</b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>During the year ended December 31, 2020 and 2019, the Company received deposits of $364,856 (HK$2,843,558) and $329,683 (HK$2,586,422) respectively, from non-related parties with intentions to purchase the Company&#146;s common stock. &#160;However, the transactions have not yet completed and therefore has been classified outside of equity for financial statement presentation. The deposits received are non-interest bearing and due on demand, if the transaction does not consummate.</p> 364856 329683 <p style='margin:0'><b>NOTE 8 &#150;&nbsp;CAPITAL STOCK</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company is authorized to issue 500,000,000 shares of common stock, $0.01 par value, and 25,000,000 shares of preferred stock, $0.01 par value. &#160;As of December 31, 2020, and 2019, there were 114,915,852 shares of the Company&#146;s common stock issued and outstanding, and none of the preferred shares were issued and outstanding.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>As of December 31, 2020, Kelton Capital Group Ltd. owned 31,190,500 shares or 27.2% of the Company&#146;s common stock, and Aspect Group Limited owned 20,000,000 shares, or 17.4% of the Company&#146;s common stock. Other than Kelton Capital Group Ltd and Aspect Group Ltd, no person owns 5% or more of the Company&#146;s issued and outstanding shares.</p> 500000000 0.01 25000000 0.01 114915852 0 0 0 0 <p align="justify" style='margin:0'><b>NOTE 9 &#150;&nbsp;LOSS PER SHARE</b></p><p style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The following table sets forth the computation of basic and diluted loss per common share for the year ended December 31, 2020 and 2019, respectively:</p><p align="center" style='margin:0'>&nbsp;</p><p style='margin:0'><b>Schedule of Loss Per Share</b></p><p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td colspan="5" valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>For the Years Ended December 31,</b></p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td colspan="2" valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>2020</b></p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td colspan="2" valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>2019</b></p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-12pt'><b> &nbsp;&nbsp;&nbsp;&nbsp;Numerator - basic and diluted</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-28.6pt'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>(461,519)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>(544,313)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-12pt'><b> &nbsp;&nbsp;&nbsp;&nbsp;Denominator</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-28.6pt'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average number of common shares outstanding &#151;basic and diluted</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>114,915,852</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>114,915,852</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-12pt'><b> &nbsp;&nbsp;&nbsp;&nbsp;Loss per common share &#151;&nbsp;basic and diluted</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(0.004)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(0.005)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr></table> <p style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td colspan="5" valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>For the Years Ended December 31,</b></p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td colspan="2" valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>2020</b></p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td colspan="2" valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="center" style='margin:0'><b>2019</b></p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-12pt'><b> &nbsp;&nbsp;&nbsp;&nbsp;Numerator - basic and diluted</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-28.6pt'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>(461,519)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.75pt solid #000000'><p align="right" style='margin:0'>(544,313)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-12pt'><b> &nbsp;&nbsp;&nbsp;&nbsp;Denominator</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-28.6pt'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average number of common shares outstanding &#151;basic and diluted</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>114,915,852</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>114,915,852</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0;text-indent:-12pt'><b> &nbsp;&nbsp;&nbsp;&nbsp;Loss per common share &#151;&nbsp;basic and diluted</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(0.004)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(0.005)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:3px double #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr></table> -461519 -544313 114915852 114915852 -0.004 -0.005 <p align="justify" style='margin:0'><b>NOTE 10 - INCOME TAXES</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes (&#147;ASC 740-10&#148;) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. &#160;Under this method, deferred tax liabilities and assets are determined based on the difference between consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. &#160;Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>For the year ended December 31, 2020, the Company's realized net taxable income which offset existing deferred tax assets relating to net operating losses, was offset further (100%) by the valuation allowance. &#160;Other temporary differences are expected to be immaterial. Therefore there were no expected income taxes, either current or deferred, reflected in the income statement.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>At December 31, 2020, the Company has available for U.S. federal income tax purposes a net operating loss carryforward of approximately $5,720,000, expiring within 20 years, that may be used to offset future taxable income. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that the benefits will not be realized. &#160;</p><p align="justify" style='margin:0'> &nbsp;</p><p align="justify" style='margin:0'>Due to possible significant changes in the Company's ownership, the future use of its existing net operating losses may be limited. Components of deferred tax assets as of December 31, 2020 are as follows.&#160;All or a portion of the remaining valuation allowance may be reduced in future years based on an assessment of earnings sufficient to fully utilize these potential tax benefits. &nbsp;</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The&#160;Company&#160;and its&#160;subsidiaries&#160;file separate&#160;income tax&#160;returns.</p><p align="justify" style='margin:0'>&#160;</p><p align="justify" style='margin:0'><i>The United States of America</i></p><p align="justify" style='margin:0'><i>&#160;</i></p><p align="justify" style='margin:0'>Scientific Energy, Inc. is incorporated in the State of Utah in the U.S., and is subject to a gradual U.S. federal corporate income tax of 21%. The State of Utah does not impose any corporate state income tax. As of December 31, 2020, future net operation losses of approximately $0.10 million are available to offset future operating income through 2040.</p><p align="justify" style='margin:0'>&#160;</p><p align="justify" style='margin:0'><i>British Virgin Islands</i></p><p align="justify" style='margin:0'>&#160;</p><p align="justify" style='margin:0'>PDI Global Limited and Makeliving Limited are incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, PDI Global Limited and Makeliving Limited are not subjected to tax on income or capital gains.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'><i>Hong Kong</i></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Sinoforte Limited is incorporated in Hong Kong and Hong Kong&#146;s profits tax rate is 8.25% for the first HK$2 million of profits of qualifying corporations, and profits above HK$2 million will be taxed at 16.5%. Sinoforte Limited did not earn any income that was derived in Hong Kong for the years ended December 31, 2020 and 2019, and therefore, Sinoforte Limited was not subjected to Hong Kong profits tax.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>At December&#160;31, 2020 and 2019, the significant components of the deferred tax (assets) liabilities are summarized below:</p><p align="justify" style='margin:0'>&nbsp;</p><p style='margin:0'><b>Schedule of Income Taxes</b></p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'><b>Deferred Tax Assets:</b></p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2020</b></p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2019</b></p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Net operating loss carryforward</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(461,519)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(531,474)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Inventory obsolescence</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Total deferred tax assets</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(461,519)</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(531,474)</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Valuation allowance</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>461,519</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>531,474</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Net deferred tax assets</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td></tr></table><p align="center" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company is subject to income tax holidays with respect to its Asian operations, and accordingly has recognized no provision for foreign income taxes.</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'><b>Rate Reconciliation:</b></p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2020</b></p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2019</b></p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Book losses (worldwide) at federal statutory rate (21%)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25,772</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>25,995</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Hong Kong Profit Tax rate (8.25%)</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,951</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>33,634</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Change in valuation allowance</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(53,723)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(59,629)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Net expense (benefit)</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td></tr></table><p style='margin:0'>&nbsp;</p><p style='margin:0'>The net deferred tax asset generated by the U.S. loss carry-forward has been fully reserved.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. &#160;During the years ended December 31, 2020 and 2019, the Company recognized no interest and penalties. &#160;&#160;The Company had no accruals for interest and penalties at December 31, 2020 and 2019. &nbsp;Tax years from 2015 through 2020 are open to examination by the taxing authorities.</p> 5720000 100000 <p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'><b>Deferred Tax Assets:</b></p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2020</b></p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2019</b></p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Net operating loss carryforward</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(461,519)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(531,474)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Inventory obsolescence</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Total deferred tax assets</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(461,519)</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(531,474)</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Valuation allowance</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>461,519</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>531,474</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Net deferred tax assets</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td></tr></table> 461519 531474 0 0 461519 531474 461519 531474 0 0 <p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'><b>Rate Reconciliation:</b></p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2020</b></p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'><b>December 31, 2019</b></p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Book losses (worldwide) at federal statutory rate (21%)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25,772</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>25,995</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Hong Kong Profit Tax rate (8.25%)</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,951</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>33,634</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Change in valuation allowance</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(53,723)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(59,629)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>Net expense (benefit)</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt'><p align="justify" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" bgcolor="#D7FFD7" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>-</p></td></tr></table> 25772 25995 27951 33634 -53723 -59629 0 0 <p align="justify" style='margin:0'><b>NOTE 11 - JOINT VENTURE</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Gold Gold Gold Limited (&#147;JV&#148;) was created in February 2018. The Company entered into a JV agreement with primary activity of trading of gold. The Company injected $12,839 (HK$100,000) to the JV during the year. The Company shared the operating loss from JV of $12,839 during 2019. </p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Summarized financial information for joint venture is as follows:</p><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'><b>Balance Sheets:</b></p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31, 2020</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31, 2019</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Property, plant and equipment, net</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>4,797</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Account receivables</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>-</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>406,412</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Other receivables and prepaid</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>8,938</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Inventory</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>496,015</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0;text-indent:-5.5pt;margin-left:5.5pt'>259,051</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Cash and cash equivalents</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>402,880</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>957,207</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Total assets</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>912,630</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>1,622,670</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Other payable</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(3,286,343</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(1,370,019</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Customer deposits and other</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(627,966</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(2,169,378</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Total liabilities</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>(3,914,309</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>(3,539,397</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt;border-top:0.5pt solid #000000'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Net liabilities</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>(3,001,679</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>(1,916,727</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>)&#160;</p></td></tr></table><p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'><b>Statement of Operations:</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>December 31,</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31,</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>2020</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="center" style='margin:0'>2019</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Revenue</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>430,423</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Cost of sale</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(314,009)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Gross profit</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>116,414</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Operating expense</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(1,069,664</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(1,933,051</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Net loss from operations</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>(953,250)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>(1,933,051</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Other income (expense):</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Interest (expense) income, net</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(122,638)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>2,089</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Net loss</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>(1,075,888</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>(1,930,962</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)&#160;</p></td></tr></table> <p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'><b>Balance Sheets:</b></p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31, 2020</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31, 2019</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Property, plant and equipment, net</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>4,797</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Account receivables</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>-</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>406,412</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Other receivables and prepaid</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>8,938</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Inventory</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>496,015</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0;text-indent:-5.5pt;margin-left:5.5pt'>259,051</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Cash and cash equivalents</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>402,880</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>957,207</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Total assets</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>912,630</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>1,622,670</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Other payable</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(3,286,343</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>(1,370,019</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Customer deposits and other</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(627,966</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(2,169,378</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Total liabilities</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>(3,914,309</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>(3,539,397</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt;border-top:0.5pt solid #000000'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Net liabilities</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>(3,001,679</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:3px double #000000'><p align="right" style='margin:0'>(1,916,727</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>)&#160;</p></td></tr></table> 4797 0 0 406412 8938 0 496015 259051 402880 957207 912630 1622670 -3286343 -1370019 -627966 -2169378 -3914309 -3539397 -3001679 -1916727 <p align="justify" style='margin:0'>&nbsp;</p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'><b>Statement of Operations:</b></p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>December 31,</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>December 31,</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p align="center" style='margin:0'>2020</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td colspan="2" valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:1pt solid #000000'><p align="center" style='margin:0'>2019</p></td><td valign="bottom" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Revenue</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>430,423</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Cost of sale</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(314,009)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Gross profit</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>116,414</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>-</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Operating expense</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(1,069,664</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(1,933,051</p></td><td valign="bottom" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Net loss from operations</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>(953,250)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000'><p align="right" style='margin:0'>(1,933,051</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Other income (expense):</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p align="right" style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>Interest (expense) income, net</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>(122,638)</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p style='margin:0'>&#160;</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-left:2pt;padding-right:2pt;border-bottom:0.5pt solid #000000'><p align="right" style='margin:0'>2,089</p></td><td valign="bottom" bgcolor="#FFFFFF" style='padding-bottom:1pt'><p style='margin:0'>&nbsp;</p></td></tr><tr align="left"><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>Net loss</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>(1,075,888</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>&nbsp;</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p style='margin:0'>$</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><p align="right" style='margin:0'>(1,930,962</p></td><td valign="bottom" bgcolor="#CCFFCC" style='padding-left:2pt;padding-right:2pt'><p style='margin:0'>)&#160;</p></td></tr></table> 430423 0 314009 0 116414 0 -1069664 -1933051 -953250 -1933051 -122638 2089 -1075888 -1930962 <p align="justify" style='margin:0'><b>NOTE 12 - COMMITMENTS AND CONTINGENCIES</b></p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Capital commitment</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>As of December 31, 2020, and 2019, no capital commitment was expected.</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>Legal Proceeding</p><p align="justify" style='margin:0'>&nbsp;</p><p align="justify" style='margin:0'>As of December 31, 2020, the Company is not aware of any material outstanding claim and litigation against them.</p> 0 0 0 <p style='margin:0'><b>NOTE 13 - SUBSEQUENT EVENTS</b></p><p style='margin:0'>&nbsp;</p><p style='margin:0'>In accordance with ASC 855, &#147;Subsequent Events,&#148; the Company has evaluated subsequent events through the date of filing. 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Vehicles {1} Vehicles Entity Incorporation, Date of Incorporation Foreign Currency Translation NOTE 11 - JOINT VENTURE Notes CASH FLOWS FROM INVESTING ACTIVITIES: Statement [Line Items] AOCI Including Portion Attributable to Noncontrolling Interest Interest (expense) income, net Total non-current assets Total non-current assets Entity Current Reporting Status Subsequent Event Type [Axis] Hong Kong Profit Tax rate (8.25%) In May 2018 Represents the In May 2018, during the indicated time period. Right to use assets, net Right to use assets, net Represents the monetary amount of Right to use assets, net, as of the indicated date. 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Document and Entity Information - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Apr. 15, 2021
Jun. 30, 2020
Details      
Registrant CIK 0001276531    
Fiscal Year End --12-31    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2020    
Document Transition Report false    
Entity File Number 000-50559    
Entity Registrant Name SCIENTIFIC ENERGY, INC    
Entity Incorporation, State or Country Code UT    
Entity Tax Identification Number 87-0680657    
Entity Address, Address Line One 27 Weldon Street    
Entity Address, City or Town Jersey City    
Entity Address, State or Province NJ    
Entity Address, Postal Zip Code 07306    
Entity Address, Address Description Address of principal executive offices    
City Area Code 852    
Local Phone Number 2530 -2089    
Phone Fax Number Description Registrant’s telephone number    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 1,600
Entity Common Stock, Shares Outstanding   114,915,852  
Amendment Flag false    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
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Consolidated Balance Sheets - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 14,468 $ 84,629
Prepaid expense and other receivables 0 2,800
Total current assets 14,468 87,429
Non-current assets:    
Property, plant and equipment, net 854 1,834
Operating lease right to use assets 50,786 13,724
Deposits 14,743 20,276
Total non-current assets 66,383 35,834
Total assets 80,851 123,263
Current liabilities:    
Accounts payable and accrued expenses 1,164,395 1,159,871
Operating lease liabilities 50,786 13,724
Note payable 233,936 223,000
Stock subscription payables 1,041,539 676,683
Total current liabilities 2,490,656 2,073,278
Commitments and contingencies (Note 12) [1] 0 0
Stockholders' deficit:    
Preferred Stock, Value 0 0
Common Stock, Value 1,149,159 1,149,159
Additional paid in capital 5,734,030 5,734,030
Accumulated deficit (9,301,091) (8,839,572)
Accumulated other comprehensive income 8,097 6,368
Total stockholders' deficit (2,409,805) (1,950,015)
Total liabilities and stockholders' deficit $ 80,851 $ 123,263
[1] See Note 12.
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.21.1
Consolidated Balance Sheets - Parenthetical - $ / shares
Dec. 31, 2020
Dec. 31, 2019
Details    
Preferred Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Preferred Stock, Shares Authorized 25,000,000 25,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Common Stock, Shares Authorized 500,000,000 500,000,000
Common Stock, Shares, Issued 114,915,852 114,915,852
Common Stock, Shares, Outstanding 114,915,852 114,915,852
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.21.1
Consolidated Statements of Operations and Comprehensive Loss - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
REVENUE $ 0 $ 0
COST OF REVENUE 0 0
GROSS PROFIT 0 0
OPERATING EXPENSES:    
Selling, general and administrative expenses 471,983 522,831
Depreciation 980 775
Total operating expenses 472,963 523,606
NET LOSS FROM OPERATIONS (472,963) (523,606)
Other income (expense):    
Sundry (expense) income, net 22,647 0
Share of (expense) income from unconsolidated entities 0 (12,839)
Interest (expense) income, net (11,203) (7,868)
Net loss before provision for income taxes (461,519) (544,313)
Income taxes 0 0
NET LOSS (461,519) (544,313)
OTHER COMPREHENIVE LOSS:    
Foreign translation gain (loss) 1,729 13,650
Comprehensive loss $ (459,790) $ (530,663)
Net loss per common share, basic and diluted $ (0.004) $ (0.005)
Weighted average common shares outstanding, basic and diluted 114,915,852 114,915,852
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.21.1
Consolidated Statement of Stockholders' Deficit - USD ($)
Common Stock
Additional Paid-in Capital
Retained Earnings
AOCI Including Portion Attributable to Noncontrolling Interest
Total
Equity Balance, Starting at Dec. 31, 2018 $ 1,149,159 $ 5,734,030 $ (8,295,259) $ (7,282) $ (1,419,352)
Shares Outstanding, Starting at Dec. 31, 2018 114,915,852        
Foreign currency transaction income $ 0 0 0 13,650 13,650
Net Income (Loss) 0 0 (544,313) 0 (544,313)
Equity Balance, Ending at Dec. 31, 2019 $ 1,149,159 5,734,030 (8,839,572) 6,368 (1,950,015)
Shares Outstanding, Ending at Dec. 31, 2019 114,915,852        
Foreign currency transaction income $ 0 0 0 1,729 1,729
Net Income (Loss) 0 0 (461,519) 0 (461,519)
Equity Balance, Ending at Dec. 31, 2020 $ 1,149,159 $ 5,734,030 $ (9,301,091) $ 8,097 $ (2,409,805)
Shares Outstanding, Ending at Dec. 31, 2020 114,915,852        
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.21.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (461,519) $ (544,313)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 980 775
Share of expense from unconsolidated entities 0 12,839
Deposits 5,533 (12)
Prepaid expenses and other receivables 2,800 4,287
Accounts payable and accrued expenses 4,524 5,864
Net cash used in operating activities (447,682) (520,560)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Investments in unconsolidated entities 0 (12,839)
Purchase of equipment 0 (1,346)
Net cash used in investing activities 0 (14,185)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable 10,936 123,000
Proceeds from subscription received 364,856 329,683
Net cash provided by financing activities 375,792 452,683
Effect of currency rate changes on cash 1,729 13,650
Net decrease in cash and cash equivalents (70,161) (68,412)
Cash and Cash Equivalents, at Carrying Value, Beginning Balance 84,629 153,041
Cash and Cash Equivalents, at Carrying Value, Ending Balance 14,468 84,629
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
Interest paid, net 11,203 7,868
Income taxes paid 0 0
Non cash financing activities:    
Record right to use assets upon adoption of ASC 842 50,786 13,724
Record lease liabilities upon adoption of ASC 842 $ 50,786 $ 13,724
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

 

Scientific Energy, Inc., (the "Company") was incorporated under the laws of the State of Utah on May 30, 2001.  Prior to August 2011, the Company was principally devoted to the buying and selling of various types and grades of graphite, such as medium- and high-carbon graphite, high-purity graphite, micro-powder graphite and expandable graphite.   In August 2011, the Company decided to engage in a business of e-commerce platform. Currently the Company is in the process of developing a website, which provides an e-commerce platform, where registered members can exchange goods and services.

 

On March 28, 2006, the Company set up a wholly owned subsidiary, PDI Global Limited (“PDI”), which was incorporated in the British Virgin Islands in order to engage in a business of e-commerce platform.

 

In January 2008, the Company entered into a joint venture agreement with China Resources Development Group Ltd., a Hong Kong company.  Under the agreement, a joint venture company, Kabond Investments Ltd (the “JVC”), was established in Hong Kong, and the Company invested $39.6 million Hong Kong dollars (approximately $5.09 million) into the JVC for 72% of the JVC’s capital shares, and China Resources Development Group Ltd., jointly with its partner, invested $15.4 million Hong Kong dollars (approximately $1.98 million) into the JVC to receive 28% of the JVC’s capital shares.  In December 2008, all equity interest of the JVC owned by the Company was sold to a third party for $39.6 million Hong Kong dollars (approximately $5,109,743).

 

In January 2009, the Company through its wholly-owned subsidiary, PDI, entered into a joint venture agreement with China Resources Development Group Ltd.  Under the agreement, the Company agreed to invest $43,040,000 Hong Kong dollars (approximately $5.55 million) into a joint venture company Sinoforte Ltd. in Hong Kong (“Sinoforte”).  The Company got 80% of Sinoforte's capital shares, and China Resources invested $10,222,000 Hong Kong dollars, approximately $1,318,967, and another investor invested $538,000 Hong Kong dollars, or approximately $69,419, into Sinoforte for 19% and 1% of Sinoforte's capital shares, respectively.  The main business of Sinoforte was trading mineral products such as graphite produced in China.  In June 2009 and September 2009, respectively, China Resources and the other minority investor cancelled their investments in Sinoforte, and the full amount of their original investments was returned.  As a result, Sinoforte became a wholly-owned subsidiary of PDI. On December 8, 2020, PDI sold all the shares of Sinoforte to the Company at consideration of HK$10.

 

On February 28, 2012, the Company set up a wholly-owned subsidiary, Makeliving Ltd., which was incorporated in the Cayman Islands in order to engage in a business of e-commerce platform.

 

On January 23, 2018, the Company entered into an agreement with Cityhill Limited, a wholly owned subsidiary of South Sea Petroleum Holdings Limited, a Hong Kong listed public company, pursuant to which parties agreed to establish a joint venture (the “Joint Venture”).  Each party owns 50% equity interest in the Joint Venture respectively.

XML 18 R8.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year.

 

The Company's consolidated financial statements are prepared using the generally accepted accounting principles 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 generated significant revenues since 2011 and is unlikely to generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from shareholders.

 

The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its 100% owned subsidiaries, Makeliving, Ltd., PDI and Sinoforte.  

 

All significant intercompany transactions and balances have been eliminated in consolidation.

 

Revenue Recognition

 

The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded.

 

The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.

 

Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable.

 

The Company is exploring web based e-commerce to bring buyers and sellers together recognizing revenue as commissions on closed transactions.

 

Segment information

 

ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance.  All sales and substantial assets of the Company are in China. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10.  The information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment.

 

Use of Estimates

 

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

 

Concentration of Credit Risk

 

The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.  Generally, the Company’s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management.

 

As of December 31, 2020, and December 31, 2019, the Company maintained Nil and $51,372 in foreign bank accounts not subject to FDIC coverage

 

The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

 

Cash and Cash Equivalents

 

For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks.

 

Comprehensive Income (Loss)

 

The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (“ASC 220-10”) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources.  It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments.

 

Foreign Currency Translation

 

The Company translates the foreign currency consolidated financial statements into US Dollars (“USD”) using the year or reporting period-end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”).  Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date.  Revenues and expenses are translated at average rates in effect for the periods presented.

 

The consolidated financial statements were presented in US Dollars except as other specified.

 

The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders’ equity (deficit).  Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.

 

The exchange rates used to translate amounts in HKD into US Dollars for the purposes of preparing the consolidated financial statements were as follows:

 

 

 

December 31, 2020

 

December 31, 2019

Exchange rate on balance sheet dates

 

 

 

 

USD : HKD exchange rate

 

7.7536

 

7.7889

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2020

 

Year Ended December 31, 2019

Average exchange rate for the period

 

 

 

 

USD : HKD exchange rate

 

7.7561

 

7.8350

 

Property, plant and equipment

 

The estimated useful lives of property, plant and equipment are as follows:

 

 

 

 

 

 

 

Office equipment

 

3 years

 

Furniture and fixtures

 

3 years

 

Vehicles

 

4 years

 

 

The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value.  The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value.  Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved.

 

Fair Value Measurements

 

ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

 

Level 1

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2

Other inputs that is directly or indirectly observable in the marketplace.

 

 

 

Level 3

Unobservable inputs which are supported by little or no market activity.

 

 

 

 

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

 

Earnings (Loss) Per Share

 

Earnings Per Share (‘EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  

 

The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period.  The Company has no stock options, warrants or other potentially dilutive instruments outstanding at December 31, 2020 and 2019.

 

Investment in Unconsolidated Joint Ventures

 

The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Company’s investment in joint venture is accounted for using the equity method.

 

Lease liabilities

 

In adopting ASC Topic 842, Leases (Topic 842), the Company has elected the ‘package of practical expedients’, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company.  In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less.  In determining the length of the lease term to its long-term lease, the Company determined it did not have an option to extend either lease.  

 

Recent Accounting Pronouncements

 

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of this standard on its financial statements and related disclosures.

 

In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The Company did not modify any material contracts due to reference rate reform during fiscal 2020. The Company will continue to evaluate the impact this guidance will have on financial statements for all future transactions affected by reference rate reform during the time permitted.

 

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). The FASB issued this update as part of its initiative to reduce complexity in accounting standards. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also improve consistent application of other areas by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company in fiscal 2022 and early adoption is permitted. Certain amendments of this ASU may be adopted on a retrospective basis, modified retrospective basis or prospective basis. The Company is currently evaluating the impact this guidance will have on its financial statements.

 

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes ASC 326, Financial Instruments - Credit Losses. The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC 326. This ASU provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company is currently evaluating the impact this guidance will have on its financial statements. The adoption of this standard did not have a material impact on its consolidated financial statements.

 

In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"), which updates the standard to remove disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The Company is currently evaluating the impact of adoption of this new standard and does not believe that the adoption of this ASU will have a significant impact on its financial statements.

 

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements, which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842, Leases (“ASC 842”). ASC 842 supersedes the lease accounting requirements in ASC 840, Leases (“ASC 840”). ASC 842 establishes a right-of-use model that requires a lessee to record a right-of-use (“ROU”) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures around the amount, timing and uncertainty of cash flows arising from leases. The Company adopted the new standard since January 1, 2019.

 

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 3 - GOING CONCERN
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 3 - GOING CONCERN

NOTE 3 – GOING CONCERN

 

As shown in the accompanying consolidated financial statements, the Company has generated a net loss of $461,519 and an accumulated deficit of $9,301,091 as of December 31, 2020. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholders. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities.

 

The Company’s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

These factors have raised substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT

NOTE 4 – PROPERTY, PLANT AND EQUIPMENT

 

Furniture and equipment as of December 31, 2020 and 2019 is summarized as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Office furniture and  fixtures

 

$

679

 

 

$

678

 

Office equipment

 

 

9,968

 

 

 

9,952

 

Vehicles

 

 

165,267

 

 

 

164,519

 

Less:  accumulated depreciation

 

 

(175,060

)

 

 

(173,315

)

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net 

 

$

854

 

 

$

1,834

 

 

Depreciation expense for the years ended December 31, 2020 and 2019 was $980 and $775, respectively.

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY

NOTE 5 – RIGHT TO USE ASSETS AND LEASE LIABILITY

 

Effective June 1, 2018, the Company entered into a two-year lease for approximately 250 square feet in New York City, New York, expiring May 31, 2020 with monthly payments of $2,800 per month.  In addition, the Company entered into a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 10, 2022, with monthly payments of approximately $4,418 per month.

 

At lease commencement dates, the Company estimated the lease liability and the right of use assets at present value using the Company’s estimated incremental borrowing rate of 8% and determined the initial present value, at inception, of $160,653.  On January 1, 2019, upon adoption of ASC Topic 842, the Company recorded right to use assets (net) of $95,111 and lease liability of $95,111.

 

Right to use assets is summarized below:

 

 

 

December 31, 2020

 

 

December 31, 2019

 

New York

$

62,322

 

 

$

62,322

 

Hong Kong

 

98,331

 

 

 

97,918

 

Subtotal

 

160,653

 

 

 

160,240

 

Less accumulated depreciation

 

(109,867)

 

 

 

(146,516

)

Right to use assets, net

$

50,786

 

 

$

13,724

 

 

During the year ended December 31, 2020 and 2019, the Company recorded $84,926 and $81,066 as lease expense to current period operations.

 

Lease liability is summarized below:

 

 

 

December 31, 2020

 

December 31, 2019

 

New York

$

-

 

$

13,724

 

Hong Kong

 

50,786

 

 

-

 

Total lease liability

 

50,786

 

 

13,724

 

Less: short term portion

 

(50,786)

 

 

(13,724

)

Long term portion

$

-

 

$

-

 

 

Maturity analysis under these lease agreements are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2020

$

53,014

 

 

$

14,000

 

Less:  Present value discount

 

(2,228)

 

 

 

(276

)

Lease liability

$

50,786

 

 

$

13,724

 

 

Lease expense for the year ended December 31, 2020 was comprised of the following:

 

 

 

 

 

 

Operating lease expense

 

$

67,014

 

Short-term lease expense

 

 

23,272

 

 

 

$

90,286

 

 

Lease expense for the year ended December 31, 2019 was comprised of the following:

 

 

 

 

 

 

Operating lease expense

 

$

65,457

 

Short-term lease expense

 

 

15,609

 

 

 

$

81,066

 

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 6 - NOTE PAYABLE
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 6 - NOTE PAYABLE

NOTE 6 – NOTE PAYABLE

 

In May 2018, the Company issued an unsecured note payable for $35,000 bearing interest at 5.0% per annum, payable monthly and due on July 1, 2019.  The Company entered into an Extension Agreement in order to extend the due date of the note payable for all outstanding principal and accrued and unpaid interest due to November 18, 2020.

 

In November 2018, the Company issued an unsecured note payable for $65,000 bearing interest at 5.0% per annum, payable monthly and due on November 18, 2020.  

 

In July 2019, the Company issued an unsecured note payable for $123,000 bearing interest at 5.0% per annum, payable monthly and due on July 9, 2021.  

 

In November 2020, upon maturity of the May 2018 and November 2018 unsecured notes in aggregate of $100,000, the Company issued an unsecured note payable of $110,936 as payment of the maturing notes payable and accrued interest of $10,936.  The note payable bears interest of 5% and is due on December 31, 2022.  

 

The above accrued interests are included in accrued expenses and payable on the maturity date.

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 7 - STOCK SUBCRIPTION PAYABLES
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 7 - STOCK SUBCRIPTION PAYABLES

NOTE 7 – STOCK SUBCRIPTION PAYABLES

 

During the year ended December 31, 2020 and 2019, the Company received deposits of $364,856 (HK$2,843,558) and $329,683 (HK$2,586,422) respectively, from non-related parties with intentions to purchase the Company’s common stock.  However, the transactions have not yet completed and therefore has been classified outside of equity for financial statement presentation. The deposits received are non-interest bearing and due on demand, if the transaction does not consummate.

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 8 - CAPITAL STOCK
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 8 - CAPITAL STOCK

NOTE 8 – CAPITAL STOCK

 

The Company is authorized to issue 500,000,000 shares of common stock, $0.01 par value, and 25,000,000 shares of preferred stock, $0.01 par value.  As of December 31, 2020, and 2019, there were 114,915,852 shares of the Company’s common stock issued and outstanding, and none of the preferred shares were issued and outstanding.

 

As of December 31, 2020, Kelton Capital Group Ltd. owned 31,190,500 shares or 27.2% of the Company’s common stock, and Aspect Group Limited owned 20,000,000 shares, or 17.4% of the Company’s common stock. Other than Kelton Capital Group Ltd and Aspect Group Ltd, no person owns 5% or more of the Company’s issued and outstanding shares.

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 9 - LOSS PER SHARE
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 9 - LOSS PER SHARE

NOTE 9 – LOSS PER SHARE

 

The following table sets forth the computation of basic and diluted loss per common share for the year ended December 31, 2020 and 2019, respectively:

 

Schedule of Loss Per Share

 

 

 

For the Years Ended December 31,

 

 

 

  

2020

  

2019

 

 

    Numerator - basic and diluted

  

 

 

  

 

 

 

 

           Net loss

  

$

(461,519)

 

$

(544,313)

 

 

    Denominator

  

 

 

  

 

 

 

 

           Weighted average number of common shares outstanding —basic and diluted

  

 

114,915,852

  

 

114,915,852

 

 

    Loss per common share — basic and diluted

  

$

(0.004)

 

$

(0.005)

 

 

 

  

 

 

  

 

 

 

 

XML 26 R16.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 10 - INCOME TAXES
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 10 - INCOME TAXES

NOTE 10 - INCOME TAXES

 

The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns.  Under this method, deferred tax liabilities and assets are determined based on the difference between consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant.

 

For the year ended December 31, 2020, the Company's realized net taxable income which offset existing deferred tax assets relating to net operating losses, was offset further (100%) by the valuation allowance.  Other temporary differences are expected to be immaterial. Therefore there were no expected income taxes, either current or deferred, reflected in the income statement.

 

At December 31, 2020, the Company has available for U.S. federal income tax purposes a net operating loss carryforward of approximately $5,720,000, expiring within 20 years, that may be used to offset future taxable income. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that the benefits will not be realized.  

 

Due to possible significant changes in the Company's ownership, the future use of its existing net operating losses may be limited. Components of deferred tax assets as of December 31, 2020 are as follows. All or a portion of the remaining valuation allowance may be reduced in future years based on an assessment of earnings sufficient to fully utilize these potential tax benefits.  

 

The Company and its subsidiaries file separate income tax returns.

 

The United States of America

 

Scientific Energy, Inc. is incorporated in the State of Utah in the U.S., and is subject to a gradual U.S. federal corporate income tax of 21%. The State of Utah does not impose any corporate state income tax. As of December 31, 2020, future net operation losses of approximately $0.10 million are available to offset future operating income through 2040.

 

British Virgin Islands

 

PDI Global Limited and Makeliving Limited are incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, PDI Global Limited and Makeliving Limited are not subjected to tax on income or capital gains.

 

Hong Kong

 

Sinoforte Limited is incorporated in Hong Kong and Hong Kong’s profits tax rate is 8.25% for the first HK$2 million of profits of qualifying corporations, and profits above HK$2 million will be taxed at 16.5%. Sinoforte Limited did not earn any income that was derived in Hong Kong for the years ended December 31, 2020 and 2019, and therefore, Sinoforte Limited was not subjected to Hong Kong profits tax.

 

At December 31, 2020 and 2019, the significant components of the deferred tax (assets) liabilities are summarized below:

 

Schedule of Income Taxes

 

Deferred Tax Assets:

 

December 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss carryforward

$

(461,519)

 

$

(531,474)

Inventory obsolescence

 

-

 

 

-

 

 

 

 

 

 

Total deferred tax assets

 

(461,519)

 

 

(531,474)

Valuation allowance

 

461,519

 

 

531,474

Net deferred tax assets

$

-

 

$

-

 

The Company is subject to income tax holidays with respect to its Asian operations, and accordingly has recognized no provision for foreign income taxes.

 

Rate Reconciliation:

 

December 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Book losses (worldwide) at federal statutory rate (21%)

$

      25,772

 

$

25,995

Hong Kong Profit Tax rate (8.25%)

 

      27,951

 

 

33,634

Change in valuation allowance

 

(53,723)

 

 

(59,629)

Net expense (benefit)

$

-

 

$

-

 

The net deferred tax asset generated by the U.S. loss carry-forward has been fully reserved.

 

The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.  During the years ended December 31, 2020 and 2019, the Company recognized no interest and penalties.   The Company had no accruals for interest and penalties at December 31, 2020 and 2019.  Tax years from 2015 through 2020 are open to examination by the taxing authorities.

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 11 - JOINT VENTURE
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 11 - JOINT VENTURE

NOTE 11 - JOINT VENTURE

 

Gold Gold Gold Limited (“JV”) was created in February 2018. The Company entered into a JV agreement with primary activity of trading of gold. The Company injected $12,839 (HK$100,000) to the JV during the year. The Company shared the operating loss from JV of $12,839 during 2019.

 

Summarized financial information for joint venture is as follows:

 

Balance Sheets:

 

December 31, 2020

 

December 31, 2019

 

Property, plant and equipment, net

 

$

4,797

 

$

-

 

Account receivables

 

 

-

 

 

406,412

 

Other receivables and prepaid

 

 

8,938

 

 

-

 

Inventory

 

 

496,015

 

 

259,051

 

Cash and cash equivalents

 

 

402,880

 

 

957,207

 

Total assets

 

 

912,630

 

 

1,622,670

 

 

 

 

 

 

 

 

 

Other payable

 

 

(3,286,343

)

 

(1,370,019

)

Customer deposits and other

 

 

(627,966

)

 

(2,169,378

)

Total liabilities

 

 

(3,914,309

)

 

(3,539,397

)

 

 

 

 

 

 

 

 

Net liabilities

 

$

(3,001,679

)

$

(1,916,727

 

Statement of Operations:

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Revenue

$

430,423

 

 

$

-

 

Cost of sale

 

(314,009)

 

 

 

-

 

Gross profit

 

116,414

 

 

 

-

 

Operating expense

 

(1,069,664

)

 

 

(1,933,051

)

Net loss from operations

 

(953,250)

 

 

 

(1,933,051

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Interest (expense) income, net

 

(122,638)

 

 

 

2,089

 

Net loss

$

(1,075,888

)

 

$

(1,930,962

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 12 - COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 12 - COMMITMENTS AND CONTINGENCIES

NOTE 12 - COMMITMENTS AND CONTINGENCIES

 

Capital commitment

 

As of December 31, 2020, and 2019, no capital commitment was expected.

 

Legal Proceeding

 

As of December 31, 2020, the Company is not aware of any material outstanding claim and litigation against them.

XML 29 R19.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 13 - SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2020
Notes  
NOTE 13 - SUBSEQUENT EVENTS

NOTE 13 - SUBSEQUENT EVENTS

 

In accordance with ASC 855, “Subsequent Events,” the Company has evaluated subsequent events through the date of filing. The Company acquired an entire Hong Kong company on February 8, 2021 and disposed of PDI on March 24, 2021.  No other material subsequent events were noted.

XML 30 R20.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Basis of Presentation

Basis of Presentation

 

The accompanying audited consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, and the results of its operations and its cash flows. Operating results as presented are not necessarily indicative of the results to be expected for a full year.

 

The Company's consolidated financial statements are prepared using the generally accepted accounting principles 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 generated significant revenues since 2011 and is unlikely to generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from shareholders.

 

The accompanying consolidated financial statements present the financial position and the results of operations of the Company and its 100% owned subsidiaries, Makeliving, Ltd., PDI and Sinoforte.  

 

All significant intercompany transactions and balances have been eliminated in consolidation.

XML 31 R21.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Revenue Recognition

Revenue Recognition

 

The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded.

 

The Company defers any revenue for which the product has not been delivered or services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.

 

Revenues on the sale of products, net of estimated costs of returns and allowance, are recognized at the time products are shipped to customers, legal title has passed, and all significant contractual obligations of the Company have been satisfied. Products are generally sold on open accounts under credit terms customary to the geographic region of distribution. The Company performs ongoing credit evaluations of the customers and generally does not require collateral to secure the accounts receivable.

 

The Company is exploring web based e-commerce to bring buyers and sellers together recognizing revenue as commissions on closed transactions.

XML 32 R22.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Segment information (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Segment information

Segment information

 

ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance.  All sales and substantial assets of the Company are in China. The Company applies the management approach to the identification of our reportable operating segments as provided in accordance with ASC 280-10.  The information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment.

XML 33 R23.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Use of Estimates

Use of Estimates

 

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

XML 34 R24.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risk (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Concentration of Credit Risk

Concentration of Credit Risk

 

The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.  Generally, the Company’s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management.

 

As of December 31, 2020, and December 31, 2019, the Company maintained Nil and $51,372 in foreign bank accounts not subject to FDIC coverage

 

The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

XML 35 R25.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Cash and Cash Equivalents

Cash and Cash Equivalents

 

For purposes of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits held by banks.

XML 36 R26.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Comprehensive Income (Loss) (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Comprehensive Income (Loss)

Comprehensive Income (Loss)

 

The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (“ASC 220-10”) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources.  It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments.

XML 37 R27.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Foreign Currency Translation

Foreign Currency Translation

 

The Company translates the foreign currency consolidated financial statements into US Dollars (“USD”) using the year or reporting period-end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”).  Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date.  Revenues and expenses are translated at average rates in effect for the periods presented.

 

The consolidated financial statements were presented in US Dollars except as other specified.

 

The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders’ equity (deficit).  Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.

 

The exchange rates used to translate amounts in HKD into US Dollars for the purposes of preparing the consolidated financial statements were as follows:

 

 

 

December 31, 2020

 

December 31, 2019

Exchange rate on balance sheet dates

 

 

 

 

USD : HKD exchange rate

 

7.7536

 

7.7889

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2020

 

Year Ended December 31, 2019

Average exchange rate for the period

 

 

 

 

USD : HKD exchange rate

 

7.7561

 

7.8350

XML 38 R28.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Property, plant and equipment

Property, plant and equipment

 

The estimated useful lives of property, plant and equipment are as follows:

 

 

 

 

 

 

 

Office equipment

 

3 years

 

Furniture and fixtures

 

3 years

 

Vehicles

 

4 years

 

 

The Company evaluates the carrying value of items of property, plant and equipment to be held and used whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  The carrying value of an item of property, plant and equipment is considered impaired when the projected undiscounted future cash flows related to the asset are less than its carrying value.  The Company measures impairment based on the amount by which the carrying value of the respective asset exceeds its fair value.  Fair value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved.

XML 39 R29.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Fair Value Measurements

Fair Value Measurements

 

ASC Topic 820 defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. This topic does not require any new fair value measurements. ASC Topic 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

 

Level 1

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2

Other inputs that is directly or indirectly observable in the marketplace.

 

 

 

Level 3

Unobservable inputs which are supported by little or no market activity.

 

 

 

 

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

XML 40 R30.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Earnings (Loss) Per Share (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Earnings (Loss) Per Share

Earnings (Loss) Per Share

 

Earnings Per Share (‘EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  

 

The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period.  The Company has no stock options, warrants or other potentially dilutive instruments outstanding at December 31, 2020 and 2019.

XML 41 R31.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Investment in Unconsolidated Joint Ventures (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Investment in Unconsolidated Joint Ventures

Investment in Unconsolidated Joint Ventures

 

The Company entered into a JV agreement with an independent third party, to form a JV company. The joint venture agreement provides the Company with only the rights to the assets and obligation for the liabilities of the joint arrangement resting primarily with the JV. In adopting ASC Topic 323, Investments - Equity Method and Joint Ventures (Topic 323), the Company’s investment in joint venture is accounted for using the equity method.

XML 42 R32.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease liabilities (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Lease liabilities

Lease liabilities

 

In adopting ASC Topic 842, Leases (Topic 842), the Company has elected the ‘package of practical expedients’, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company.  In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less.  In determining the length of the lease term to its long-term lease, the Company determined it did not have an option to extend either lease.  

XML 43 R33.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies)
12 Months Ended
Dec. 31, 2020
Policies  
Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of this standard on its financial statements and related disclosures.

 

In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The Company did not modify any material contracts due to reference rate reform during fiscal 2020. The Company will continue to evaluate the impact this guidance will have on financial statements for all future transactions affected by reference rate reform during the time permitted.

 

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). The FASB issued this update as part of its initiative to reduce complexity in accounting standards. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also improve consistent application of other areas by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company in fiscal 2022 and early adoption is permitted. Certain amendments of this ASU may be adopted on a retrospective basis, modified retrospective basis or prospective basis. The Company is currently evaluating the impact this guidance will have on its financial statements.

 

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes ASC 326, Financial Instruments - Credit Losses. The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC 326. This ASU provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company is currently evaluating the impact this guidance will have on its financial statements. The adoption of this standard did not have a material impact on its consolidated financial statements.

 

In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"), which updates the standard to remove disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The Company is currently evaluating the impact of adoption of this new standard and does not believe that the adoption of this ASU will have a significant impact on its financial statements.

 

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements, which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842, Leases (“ASC 842”). ASC 842 supersedes the lease accounting requirements in ASC 840, Leases (“ASC 840”). ASC 842 establishes a right-of-use model that requires a lessee to record a right-of-use (“ROU”) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures around the amount, timing and uncertainty of cash flows arising from leases. The Company adopted the new standard since January 1, 2019.

 

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

XML 44 R34.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Exchange Rates used for preparing the consolidated financial statements (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Exchange Rates used for preparing the consolidated financial statements

 

 

 

December 31, 2020

 

December 31, 2019

Exchange rate on balance sheet dates

 

 

 

 

USD : HKD exchange rate

 

7.7536

 

7.7889

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2020

 

Year Ended December 31, 2019

Average exchange rate for the period

 

 

 

 

USD : HKD exchange rate

 

7.7561

 

7.8350

XML 45 R35.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment: Schedule of Property, plant and equipment Useful Lives (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Property, plant and equipment Useful Lives

 

The estimated useful lives of property, plant and equipment are as follows:

 

 

 

 

 

 

 

Office equipment

 

3 years

 

Furniture and fixtures

 

3 years

 

Vehicles

 

4 years

 

XML 46 R36.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT: Schedule of Property and Equipment (March 31, 2019 Unaudited) (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Property and Equipment (March 31, 2019 Unaudited)

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Office furniture and  fixtures

 

$

679

 

 

$

678

 

Office equipment

 

 

9,968

 

 

 

9,952

 

Vehicles

 

 

165,267

 

 

 

164,519

 

Less:  accumulated depreciation

 

 

(175,060

)

 

 

(173,315

)

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net 

 

$

854

 

 

$

1,834

 

XML 47 R37.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Right to Use Assets (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Right to Use Assets

 

 

 

December 31, 2020

 

 

December 31, 2019

 

New York

$

62,322

 

 

$

62,322

 

Hong Kong

 

98,331

 

 

 

97,918

 

Subtotal

 

160,653

 

 

 

160,240

 

Less accumulated depreciation

 

(109,867)

 

 

 

(146,516

)

Right to use assets, net

$

50,786

 

 

$

13,724

 

XML 48 R38.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Liability (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Lease Liability

 

 

 

December 31, 2020

 

December 31, 2019

 

New York

$

-

 

$

13,724

 

Hong Kong

 

50,786

 

 

-

 

Total lease liability

 

50,786

 

 

13,724

 

Less: short term portion

 

(50,786)

 

 

(13,724

)

Long term portion

$

-

 

$

-

 

XML 49 R39.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Maturity Analysis under the Lease Agreements (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Maturity Analysis under the Lease Agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2020

$

53,014

 

 

$

14,000

 

Less:  Present value discount

 

(2,228)

 

 

 

(276

)

Lease liability

$

50,786

 

 

$

13,724

 

XML 50 R40.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Expenses (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Lease Expenses

Lease expense for the year ended December 31, 2020 was comprised of the following:

 

 

 

 

 

 

Operating lease expense

 

$

67,014

 

Short-term lease expense

 

 

23,272

 

 

 

$

90,286

 

 

Lease expense for the year ended December 31, 2019 was comprised of the following:

 

 

 

 

 

 

Operating lease expense

 

$

65,457

 

Short-term lease expense

 

 

15,609

 

 

 

$

81,066

 

XML 51 R41.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 9 - LOSS PER SHARE: Schedule of Computation of basic and diluted loss per common share (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Computation of basic and diluted loss per common share

 

 

 

For the Years Ended December 31,

 

 

 

  

2020

  

2019

 

 

    Numerator - basic and diluted

  

 

 

  

 

 

 

 

           Net loss

  

$

(461,519)

 

$

(544,313)

 

 

    Denominator

  

 

 

  

 

 

 

 

           Weighted average number of common shares outstanding —basic and diluted

  

 

114,915,852

  

 

114,915,852

 

 

    Loss per common share — basic and diluted

  

$

(0.004)

 

$

(0.005)

 

 

 

  

 

 

  

 

 

 

 

XML 52 R42.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 10 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Deferred Tax Assets and Liabilities

 

Deferred Tax Assets:

 

December 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss carryforward

$

(461,519)

 

$

(531,474)

Inventory obsolescence

 

-

 

 

-

 

 

 

 

 

 

Total deferred tax assets

 

(461,519)

 

 

(531,474)

Valuation allowance

 

461,519

 

 

531,474

Net deferred tax assets

$

-

 

$

-

XML 53 R43.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 10 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Schedule of Components of Income Tax Expense (Benefit)

 

Rate Reconciliation:

 

December 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Book losses (worldwide) at federal statutory rate (21%)

$

      25,772

 

$

25,995

Hong Kong Profit Tax rate (8.25%)

 

      27,951

 

 

33,634

Change in valuation allowance

 

(53,723)

 

 

(59,629)

Net expense (benefit)

$

-

 

$

-

XML 54 R44.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 11 - JOINT VENTURE: Summarized financial information for joint venture - Balance Sheets (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Summarized financial information for joint venture - Balance Sheets

 

Balance Sheets:

 

December 31, 2020

 

December 31, 2019

 

Property, plant and equipment, net

 

$

4,797

 

$

-

 

Account receivables

 

 

-

 

 

406,412

 

Other receivables and prepaid

 

 

8,938

 

 

-

 

Inventory

 

 

496,015

 

 

259,051

 

Cash and cash equivalents

 

 

402,880

 

 

957,207

 

Total assets

 

 

912,630

 

 

1,622,670

 

 

 

 

 

 

 

 

 

Other payable

 

 

(3,286,343

)

 

(1,370,019

)

Customer deposits and other

 

 

(627,966

)

 

(2,169,378

)

Total liabilities

 

 

(3,914,309

)

 

(3,539,397

)

 

 

 

 

 

 

 

 

Net liabilities

 

$

(3,001,679

)

$

(1,916,727

XML 55 R45.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 11 - JOINT VENTURE: Summarized financial information for joint venture - Statement of Operations (Tables)
12 Months Ended
Dec. 31, 2020
Tables/Schedules  
Summarized financial information for joint venture - Statement of Operations

 

Statement of Operations:

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Revenue

$

430,423

 

 

$

-

 

Cost of sale

 

(314,009)

 

 

 

-

 

Gross profit

 

116,414

 

 

 

-

 

Operating expense

 

(1,069,664

)

 

 

(1,933,051

)

Net loss from operations

 

(953,250)

 

 

 

(1,933,051

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Interest (expense) income, net

 

(122,638)

 

 

 

2,089

 

Net loss

$

(1,075,888

)

 

$

(1,930,962

XML 56 R46.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES (Details)
12 Months Ended
Dec. 31, 2020
Details  
Entity Incorporation, State or Country Code UT
Entity Incorporation, Date of Incorporation May 30, 2001
XML 57 R47.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risk (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Details    
Deposits in foreign bank accounts not subject to FDIC coverage $ 0 $ 51,372
XML 58 R48.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation: Schedule of Exchange Rates used for preparing the consolidated financial statements (Details)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
USD to HKD exchange rate on balance sheet date 7.7536 7.7889
Average exchange rate for the period 7.7561 7.8350
XML 59 R49.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property, plant and equipment: Schedule of Property, plant and equipment Useful Lives (Details)
12 Months Ended
Dec. 31, 2020
Office Equipment  
The estimated useful lives of property, plant and equipment are as follows: 3 years
Furniture and Fixtures  
The estimated useful lives of property, plant and equipment are as follows: 3 years
Vehicles  
The estimated useful lives of property, plant and equipment are as follows: 4 years
XML 60 R50.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 3 - GOING CONCERN (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
Net Income (Loss) $ (461,519) $ (544,313)
Accumulated deficit $ (9,301,091) $ (8,839,572)
XML 61 R51.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT: Schedule of Property and Equipment (March 31, 2019 Unaudited) (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Details    
Office furniture and fixtures $ 679 $ 678
Office equipment 9,968 9,952
Vehicles 165,267 164,519
Less: accumulated depreciation (175,060) (173,315)
Property, plant and equipment, net $ 854 $ 1,834
XML 62 R52.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
Recorded right to use assets (net) $ 95,111  
Recorded lease liability 95,111  
Recorded lease expense $ 84,926 $ 81,066
XML 63 R53.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Right to Use Assets (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Details    
Right to use assets - New York $ 62,322 $ 62,322
Right to use assets - Hong Kong 98,331 97,918
Right to use assets - Subtotal 160,653 160,240
Right to use assets - Less accumulated depreciation (109,867) (146,516)
Right to use assets, net $ 50,786 $ 13,724
XML 64 R54.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Liability (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Details    
Lease Liability - New York $ 0 $ 13,724
Lease Liability - Hong Kong 50,786 0
Total lease liability 50,786 13,724
Lease Liability - Less: short term portion (50,786) (13,724)
Lease Liability - Long term portion $ 0 $ 0
XML 65 R55.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Maturity Analysis under the Lease Agreements (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Details    
Lease Liability - Year ended December 31, 2020 $ 53,014 $ 14,000
Lease Liability - Less: Present value discount (2,228) (276)
Lease liability $ 50,786 $ 13,724
XML 66 R56.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY: Schedule of Lease Expenses (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
Operating lease expense $ 67,014 $ 65,457
Short-term lease expense 23,272 15,609
Operating Leases, Rent Expense $ 90,286 $ 81,066
XML 67 R57.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 6 - NOTE PAYABLE (Details)
12 Months Ended
Dec. 31, 2020
USD ($)
In May 2018  
Debt Instrument, Issuer Company
Debt Instrument, Collateral unsecured
Debt Instrument, Description note payable
Debt Instrument, Face Amount $ 35,000
Debt Instrument, Interest Rate, Stated Percentage 5.00%
Debt Instrument, Payment Terms payable monthly
Debt Instrument, Maturity Date Jul. 01, 2019
In November 2018  
Debt Instrument, Issuer Company
Debt Instrument, Collateral unsecured
Debt Instrument, Description note payable
Debt Instrument, Face Amount $ 65,000
Debt Instrument, Interest Rate, Stated Percentage 5.00%
Debt Instrument, Payment Terms payable monthly
Debt Instrument, Maturity Date Nov. 18, 2020
In July 2019  
Debt Instrument, Issuer Company
Debt Instrument, Collateral unsecured
Debt Instrument, Description note payable
Debt Instrument, Face Amount $ 123,000
Debt Instrument, Interest Rate, Stated Percentage 5.00%
Debt Instrument, Payment Terms payable monthly
Debt Instrument, Maturity Date Jul. 09, 2021
In November 2020  
Debt Instrument, Issuer Company
Debt Instrument, Collateral unsecured
Debt Instrument, Description note payable
Debt Instrument, Face Amount $ 110,936
Debt Instrument, Interest Rate, Stated Percentage 5.00%
Debt Instrument, Maturity Date Dec. 31, 2022
XML 68 R58.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 7 - STOCK SUBCRIPTION PAYABLES (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
Revenue from Related Parties $ 364,856 $ 329,683
XML 69 R59.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 8 - CAPITAL STOCK (Details) - $ / shares
Dec. 31, 2020
Dec. 31, 2019
Details    
Common Stock, Shares Authorized 500,000,000 500,000,000
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Preferred Stock, Shares Authorized 25,000,000 25,000,000
Preferred Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Common Stock, Shares, Issued 114,915,852 114,915,852
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
XML 70 R60.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 9 - LOSS PER SHARE: Schedule of Computation of basic and diluted loss per common share (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
NET LOSS $ (461,519) $ (544,313)
Weighted average common shares outstanding, basic and diluted 114,915,852 114,915,852
Net loss per common share, basic and diluted $ (0.004) $ (0.005)
XML 71 R61.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 10 - INCOME TAXES (Details)
Dec. 31, 2020
USD ($)
Details  
Operating Loss Carryforwards $ 5,720,000
Future net operation losses available to offset future operating income $ 100,000
XML 72 R62.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 10 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Details    
Net operating loss carryforward $ (461,519) $ (531,474)
Inventory obsolescence 0 0
Total deferred tax assets (461,519) (531,474)
Valuation allowance 461,519 531,474
Net deferred tax assets $ 0 $ 0
XML 73 R63.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 10 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
Book losses (worldwide) at federal statutory rate (21%) $ 25,772 $ 25,995
Hong Kong Profit Tax rate (8.25%) 27,951 33,634
Change in valuation allowance (53,723) (59,629)
Net expense (benefit) $ 0 $ 0
XML 74 R64.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 11 - JOINT VENTURE: Summarized financial information for joint venture - Balance Sheets (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Details    
Joint Venture - Property, plant and equipment, net $ 4,797 $ 0
Joint Venture - Account receivables 0 406,412
Joint Venture - Other receivables and prepaid 8,938 0
Joint Venture - Inventory 496,015 259,051
Joint Venture - Cash and cash equivalents 402,880 957,207
Joint Venture - Total assets 912,630 1,622,670
Joint Venture - Other payable (3,286,343) (1,370,019)
Joint Venture - Customer deposit (627,966) (2,169,378)
Joint Venture - Total liabilities (3,914,309) (3,539,397)
Joint Venture - Net liabilities $ (3,001,679) $ (1,916,727)
XML 75 R65.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 11 - JOINT VENTURE: Summarized financial information for joint venture - Statement of Operations (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Details    
Joint Venture - Revenue $ 430,423 $ 0
Joint Venture - Cost of sale (314,009) 0
Joint Venture - Gross profit 116,414 0
Joint Venture - Operating expense (1,069,664) (1,933,051)
Joint Venture - Net loss from operations (953,250) (1,933,051)
Joint Venture - Interest (expense) income, net (122,638) 2,089
Joint Venture - Net loss $ (1,075,888) $ (1,930,962)
XML 76 R66.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 12 - COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Details    
Capital Commitment Amount $ 0 $ 0
Outstanding claim and litigation $ 0  
XML 77 R67.htm IDEA: XBRL DOCUMENT v3.21.1
NOTE 13 - SUBSEQUENT EVENTS (Details)
12 Months Ended
Dec. 31, 2020
Event #1  
Subsequent Event, Description Company acquired an entire Hong Kong company
Subsequent Event, Date Feb. 08, 2021
Event #2  
Subsequent Event, Description disposed of PDI
Subsequent Event, Date Mar. 24, 2021
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