10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________

FORM 10-Q

☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File Number 000-53737

SINO UNITED WORLDWIDE CONSOLIDATED LTD.

(Exact name of registrant as specified in its charter)

Nevada (State of incorporation)

136-20 38th Ave. Unit 3G

Flushing, NY 11354(Address of Principal Executive Offices)

_______________

718-395-8706 (Issuer Telephone number)

_______________

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, 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 ☑ No ☐

Indicate by check mark whether the registrant is a larger accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☑
	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 Exchange Act. ☐

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

At June 30, 2018, there were 33,503,604 shares of the registrant's common stock issued and outstanding.

SINO UNITED WORLDWIDE CONSOLIDATED LTD.

FORM 10-Q

June 30, 2018

INDEX

PART I-- FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4.	Control and Procedures	14

PART II-- OTHER INFORMATION

Item 1.	Legal Proceedings	16
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3.	Defaults Upon Senior Securities	16
Item 4.	Mine Safety Disclosures.	16
Item 5.	Other Information.	16
Item 6.	Exhibits	16
SIGNATURES		17

Sino United Worldwide Consolidated Ltd.

Index to the consolidated financial statements

Table of Contents	Page(s)
Unaudited Consolidated Balance Sheets at June 30, 2018 and December 31, 2017	F-2
Unaudited Consolidated Statements of Comprehensive Income(loss) for the Three and Six Months Ended June 30, 2018 and 2017	F-3
Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2018 and 2017	F-4
Notes to the Consolidated Financial Statements (Unaudited)	F-5 - F-8

F-1

Sino United Worldwide Consolidated Ltd.
Consolidated Balance Sheets
(Unaudited)
		June 30, 2018			December 31, 2017
ASSETS
Current Assets
Cash	$	9,845		$	50,044
Accounts receivable		20,000			15,000
Total Current Assets		29,845			65,044
Total Assets	$	29,845		$	65,044
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities
Credit card payable	$	10,388		$	4,630
Convertible promissory note - related party		30,000			30,000
Convertible promissory note - other		65,000			65,000
Accrued expenses and other current liabilities		11,297			43,922
Total Current Liabilities		116,685			143,552
COMMITMENTS AND CONTINGENCIES
Stockholders' Deficiency
Common stock, $0.001 par value, 394,500,000 shares authorized; 33,503,604 shares issued and outstanding		33,504			33,504
Additional paid-in capital		1,647,731			1,647,731
Accumulated deficit		(1,768,075	)		(1,759,743	)
Total Stockholders' Deficiency		(86,840	)		(78,508	)
Total Liabilities and Stockholders’ Deficiency	$	29,845		$	65,044
The accompanying notes are an integral part of these consolidated financial statements.

F-2

Sino United Worldwide Consolidated Ltd.
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenue	$	30,000		$	—		$	60,000		$	—
Operating expenses
General and administrative		45,205			22,522			65,957			32,995
Total operating expenses		45,205			22,522			65,957			32,995
Loss from operations		(15,205	)		(22,522	)		(5,957	)		(32,995	)
Other expense:
Interest expense - related party		(375	)		—			(750	)		—
Interest expense - other		(812	)		—			(1,625	)		—
Total other expense		(1,187	)		—			(2,375	)		—
Loss from continuing operations before income tax provision		(16,392	)		(22,522	)		(8,332	)		(32,995	)
Income tax provision		—			—			—			—
Loss from continuing operations		(16,392	)		(22,522	)		(8,332	)		(32,995	)
Discontinued operations
Income from discontinued operations, net of tax		—			114,387			—			278,949
Net income (loss)		(16,392	)		91,865			(8,332	)		245,954
Other comprehensive income
Foreign currency translation adjustment		—			7,910			—			46,811
Comprehensive income (loss)	$	(16,392	)	$	99,775		$	(8,332	)	$	292,765
Earnings (loss) per share
Basic  - continuing operation	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
- discontinuing operation	$	—		$	0.00		$	—		$	0.00
Total	$	(0.00	)	$	0.00		$	(0.00	)	$	0.00
Diluted  - continuing operation	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
- discontinuing operation	$	—		$	0.00		$	—		$	0.00
Total	$	(0.00	)	$	0.00		$	(0.00	)	$	0.00
Weighted average shares outstanding
Basic		33,503,604			58,985,937			33,503,604			58,985,937
Diluted		33,503,604			58,985,937			33,503,604			58,985,937
The accompanying notes are an integral part of these consolidated financial statements.

F-3

Sino United Worldwide Consolidated Ltd.
Consolidated Statements of Cash Flows
(Unaudited)
	Six Months Ended June 30,
	2018			2017
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)	$	(8,332	)	$	245,954
Net income from discontinued operation		—			278,949
Net loss from continuing operation		(8,332	)		(32,995	)
Adjustment to reconcile net income(loss) to net cash provided by (used in) operating activities:
Change in operating assets and liabilities:
Accounts receivable		(5,000	)		—
Credit card payable		5,758			4,347
Accrued expenses and other current liabilities		(32,625	)		(3,881	)
Net cash used in continuing operation		(40,199	)		(32,529	)
Net cash provided by discontinued operation		—			259,122
Net cash provided by(used in) operating activities		(40,199	)		226,593
CASH FLOW FROM INVESTING ACTIVITIES
Net cash used in continuing operation		—			—
Net cash used in discontinued operation		—			(635	)
Net cash used in investing activities		—			(635	)
CASH FLOW FROM FINANCING ACTIVITIES
Net cash provided by continuing operation		—			—
Net cash used in discontinued operation		—			(244,334	)
Net cash used in financing activities		—			(244,334	)
Effect of exchange rate changes on cash		—			17,459
DECREASE IN CASH		(40,199	)		(917	)
Cash - beginning of period		50,044			3,016
Cash - end of period	$	9,845		$	2,099
Supplement disclosure information
Cash paid for interest - continuing operation	$	—		$	—
Cash paid for interest - discontinued operation	$	—		$	16,301
Cash paid for income taxes - continuing operation	$	—		$	—
Cash paid for income taxes - discontinued operation	$	—		$	2,735
The accompanying notes are an integral part of these consolidated financial statements.

F-4

Sino United Worldwide Consolidated Ltd.

Notes to the Consolidated Financial Statements

June 30, 2018

(Unaudited) 

Note 1 – Organization and Basis of presentation

Organization

Sino United Worldwide Consolidated Ltd. (the “Company”) provides IT management consulting services. The Company is also developing new businesses in various fields through careful review and critical selection of new growth businesses. The Company is planning to strengthen our core competencies in high technology and blockchain related businesses, such as blockchain dapps technology, fintech services, professional consultancy for ICO’s, and other high potential critical blockchain projects.

Basis of presentation and consolidation

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of June 30, 2018 and the results of operations and cash flows for the periods ended June 30, 2018 and 2017. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended June 30, 2018 is not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2018. The balance sheet on December 31, 2017 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2017 as included in our Annual Report on Form 10-K.

Certain amounts in last year’s financial statements have been reclassified to conform to current year presentation.

Note 2 – Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company had a working capital deficit of $86,840, an accumulated deficit of $1,768,075 and a stockholders’ deficiency of $86,840 as of June 30, 2018. The Company did not generate sufficient cash or income from its continuing operation. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The company is developing new businesses in various fields. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support the Company’s working capital requirements. To the extent that funds generated from any private placements, public offering and/or bank financing are insufficient to support the Company’s working capital requirements, the Company will have to raise additional working capital from additional financing. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, the Company may not be able continue its operations.

F-5

Note 3 — Summary of Significant Accounting Policies

Translation Adjustment

The Company’s financial statements are presented in the U.S. dollar ($), which is the Company’s reporting and functional currency. The functional currency of the Company’s subsidiaries is TWD. Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of comprehensive income (loss).

In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of comprehensive income (loss) and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from TWD into U.S. dollar are recorded in stockholders’ equity (deficiency) as part of accumulated other comprehensive income. The exchange rates used for the financial statements in accordance with ASC 830, Foreign Currency Matters, are as follows:

Average Rate for the period	June 30, 2018		June 30, 2017
Taiwan dollar(TWD)		—		1
United States Dollar($)		—		0.0326
Exchange Rate at		June 30, 2018		June 30, 2017
Taiwan dollar(TWD)		—		1
United States Dollar($)		—		0.0330

The subsidiary in Taiwan was sold as of September 30, 2017.

Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that any recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

NOTE 4 – Discontinued Operation

On September 30, 2017, pursuant to agreements with one of our directors, Li-An Chu, the Company transferred the 100% ownership in Jinchih, to Li-An Chu in exchange for cancellation of loan payable of $379,254 to Li-An Chu and cancellation of total 25,503,333 shares of the Company’s common stock owned by a group of stockholders, including Li-An Chu. As a result of these transactions, Jinchih is no longer a wholly owned subsidiary of the Company as of September 30, 2017. Since Jinchih was sold back to Li-An Chu who is the Company’s director, CEO and CFO at the time of the transaction, no gain or loss was recorded. The net gain of $99,822 from the sale of Jinchih was included in stockholders’ equity.

F-6

NOTE 4 – Discontinued Operation (Continued)

The results of operations of discontinued operations for the three months ended June 30, 2018 and 2017 are as following:

	2018		2017
Revenue	$	—	$	1,132,506
Cost of goods sold		—		(874,425	)
General and administrative expenses		—		(98,374	)
Depreciation and amortization		—		(12,542	)
Interest expense, net of interest income		—		(8,035	)
Income tax provision		—		(24,743	)
Income from discontinued operations	$	—	$	114,387

The results of operations of discontinued operations for the six months ended June 30, 2018 and 2017 are as following:

	2018		2017
Revenue	$	—	$	1,966,993
Cost of goods sold		—		(1,414,628	)
General and administrative expenses		—		(172,812	)
Depreciation and amortization		—		(25,929	)
Interest expense, net of interest income		—		(14,914	)
Income tax provision		—		(59,761	)
Income from discontinued operations	$	—	$	278,949

NOTE 5 – Convertible Promissory Note

On October 1, 2017, Mr. Tee-Keat Ong, the Chairmen of the Board of Directors, and the Company entered into a loan agreement pursuant to which Mr. Tee-Keat Ong agreed to lend the Company $30,000 initially with future loan amount up to $1,000,000. On the same date, the Company issued a promissory note to Mr. Tee-Keat Ong for the principal amount of $30,000. The promissory note bears interest at five percent (5%) per annum and is due on demand. Pursuant to the terms of the note, the note is convertible into the Company’s common stock at a conversion price of $0.001 per share. The note began to accrue interest at 10% per annum when it is past due.

On October 1, 2017, the Company entered into a loan agreement with Ms. Shoou Chyn Kan, an unrelated individual. Pursuant to the loan agreement, Ms. Shoou Chyn Kan agreed to lend the Company $65,000 initially with future loan amount up to $1,000,000. On the same date, the Company issued a promissory note to Ms. Shoou Chyn Kan for the principal amount of $65,000. The promissory note bears interest at five percent (5%) per annum and is due on demand. Pursuant to the terms of the note, the note is convertible into the Company’s common stock at a conversion price of $0.001 per share. The note began to accrue interest at 10% per annum when it is past due.

NOTE 6 – Related Party Transactions and Balances

As of June 30, 2018 and December 31, 2017, balance of convertible promissory note with related party was $30,000 (See Note 5). The Company accrued interest of $375 and $750 for the three and six months ended June 30, 2018.

F-7

NOTE 7 – Income Taxes

The Company was incorporated in the United States and are subject to income tax according to U.S. tax law.

A reconciliation of the provision for income taxes to the Company’s effective income tax rate for continuing operation is as follows:

	Six Months Ended June 30,
	2018			2017
Pre-tax loss	$	(8,332	)	$	(32,995	)
U.S. federal corporate income tax rate		21	%		35	%
Expected U.S. income tax benefit		(1,750	)		(11,548	)
Change of valuation allowance		1,750			11,548
Effective tax expense	$	—		$	—

As of December 31, 2017, the Company has approximately $1 million net operating loss carryforwards available in US, which will start to expire in 2026. In six months ended June 30, 2018, the Company has approximately $8,000 net operating loss carryforward available in the U.S., which can be used to offset 80 percent of future taxable income and can be carried forward indefinitely. It is more likely than not that the deferred tax assets cannot be utilized in the future because there will not be significant future earnings from the entity which generated the net operating loss. Therefore, the Company has set up 100% valuation allowance on deferred tax assets resulting from net operating loss incurred in the U.S.

As of June 30, 2018 and December 31, 2017, the Company has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods, and does not believe that there will be any significant increases or decreases of unrecognized tax benefits within the next twelve months. No interest or penalties relating to income tax matters have been imposed on the Company during the three and six months ended June 30, 2018 and 2017, and no provision for interest and penalties is deemed necessary as of June 30, 2018 and December 31, 2017.

The U.S. Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. Since the Company has no foreign subsidiaries after it disposed its Taiwan subsidiary on September 30, 2017, the Company believes that Tax Act will not have significant impact on the Company’s financial statements.

NOTE 8 – Subsequent Events

The Company has evaluated the existence of significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements.

F-8

Item 2. Management's Discussion and Analysis Of Financial Condition And Plan Of Operation.

This Quarterly Report contains forward-looking statements within the meaning of the federal securities laws. These include statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such as "anticipate," "expect," "intend," "plan," "will," "we believe," "management believes" and similar language. The forward-looking statements are based on the current expectations of the Company and are subject to certain risks, uncertainties and assumptions, including those set forth in the discussion under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this report. Actual results may differ materially from results anticipated in these forward-looking statements. We base the forward-looking statements on information currently available to us, and we assume no obligation to update them.

Investors are also advised to refer to the information in our previous filings with the Securities and Exchange Commission (SEC), especially on Forms 10-K, 10-Q and 8-K, in which we discuss in more detail various important factors that could cause actual results to differ from expected or historic results. It is not possible to foresee or identify all such factors. As such, investors should not consider any list of such factors to be an exhaustive statement of all risks and uncertainties or potentially inaccurate assumptions.

Overview

From October 2013 until September, 2017, through our Taiwan subsidiary Jinchih International Limited (“Jinchih”), we were engaged in design, marketing and distributing of hardware and software technologies, including new cell phone apps, as well as solutions and technology in fleet management, the driving record management system (DMS) that provide total solution and management mechanism for vehicles and driver behavior control and analysis, which increase driving safety and efficiency.

On September 30, 2017, pursuant to agreements with one of the Company’s directors, Li-An Chu, the Company transferred the 100% ownership in its wholly owned Taiwan Subsidiary, Jinchih International Limited (“Jinchih”), to Li-An Chu in exchange for cancellation of debt $379,254, and cancellation of total 25,503,333 shares of the Company’s common stock owned by a group of stockholders, including Li-An Chu. As a result of these transactions, Jinchih is no longer a wholly owned subsidiary of the Company as of September 30, 2017.

Currently, the Company provides IT management consulting services. The Company is also developing new businesses in various fields through careful review and critical selection of new growth businesses. The Company is planning to strengthen its core competencies in high technology and blockchain related businesses, such as blockchain dapps technology, fintech services, professional consultancy for ICO’s, and other high potential critical blockchain projects.

Results of Operations

Three and Six Months Ended June 30, 2018 and 2017

Revenue

The Company generated $30,000 and $60,000 of revenue from the continuing operation during the three and six months ended June 30, 2018. As discussed previously, the Company sold its wholly-owned subsidiary Jinchih on September 30, 2017, we included the revenue from Jinchih for the three and six months ended June 30, 2017 in the income from discontinued operation on Consolidated Statements of Comprehensive Income (Loss).

Our revenue of $60,000 was generated from the I.T. management consulting services.

11

General and administrative expenses

General and administrative expenses primarily consist of investor relation expenses, professional fees and other miscellaneous operational expenses. General and administrative expenses for the three months ended June 30, 2018 and 2017 were $45,205 and $22,522, respectively. General and administrative expenses for the six months ended June 30, 2018 and 2017 were $65,957 and $32,995, respectively. The increase in general and administrative expense is primarily related to the professional fee paid for filing the Company’s prior period 10K and 10Qs.

Interest expense

Interest expense from continuing operation was $1,187 for the three months ended June 30, 2018 which included the interest on the convertible promissory notes issued for $1,187. There was no interest expense from continuing operation for the three months ended June 30, 2017.

Interest expense from continuing operation was $2,375 for the six months ended June 30, 2018 which included the interest on the convertible promissory notes issued for $2,375. There was no interest expense from continuing operation for the six months ended June 30, 2017.

Loss from continuing operations

The Company generated net loss from continuing operations of $16,392 and $22,522 for the three months ended June 30, 2018 and 2017, respectively.

The Company generated net loss from continuing operations of $8,332 and $32,995 for the six months ended June 30, 2018 and 2017, respectively.

Income from discontinued operations

The Company generated net income from discontinued operations of $114,387 and $278,949 for the three and six months ended June 30, 2017, respectively. There was no income or loss generated for the three and six months ended June 30, 2018.

Net income(loss)

As a result of the foregoing, the Company generated net loss of $16,392 and $8,332 for the three and six months ended June 30, 2018, respectively. The Company generated net income of $91,865 and $245,954 for the three and six months ended June 30, 2017, respectively.

Foreign currency translation adjustments

The functional currency of our subsidiaries operating in the Taiwan is the Taiwan Dollars (“TWD”). The financial statements of our subsidiaries are translated to U.S. dollars using period end rates of exchange for assets and liabilities, and average rates of exchange (for the period) for revenues, costs, and expenses. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of comprehensive income. As a result of these translations, which are a non-cash adjustment, we reported foreign currency translation gain of $7,910 and $46,811 for the three and six months ended June 30, 2017. There is no foreign currency translation adjustment recorded for the three and six months ended June 30, 2018 since the Company sold the wholly-owned subsidiary Jinchih on September 30, 2017.

Liquidity and Capital Resources

We have funded our operations to date primarily through the operations and related party loan, bank loan and capital contributions. The Company had a working capital deficit of $86,840, an accumulated deficit of $1,768,075 and a stockholders’ deficiency of $86,840 as of June 30, 2018. The Company did not generate sufficient cash or income from its continuing operation. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support the Company’s working capital requirements. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The Company plans to rely on the advances and loans from related parties, the proceeds from funds generated from private placements, public offering and/or bank financing to support the Company’s working capital requirements. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, the Company may not be able continue its operations.

As of June 30, 2018, Our current assets were $29,845 primarily consisting of cash of $9,845 and account receivable of $20,000. Our current liabilities were primarily composed of credit card payable of $10,388, convertible promissory notes of $95,000 and accrued expenses and other current liabilities of $11,297.

12

Cash Flow from Operating Activities

Net cash used in operating activities was $40,199 for the six months ended June 30, 2018, which consisted of our net loss from continuing operation of $8,332, a change of accounts receivable of $5,000, a change of credit card payable of $5,758 and a change of accrued expenses of $32,625.

Net cash provided by operating activities was $226,593 for the six months ended June 30, 2017, which consisted of our net loss from continuing operation of $32,995, a change of credit card payable of $4,347, a change of accrued expenses of $3,881 and net cash provided by discontinued operation of $259,122.

Cash Flow from Investing Activities

There were no investing activities for the six months ended June 30, 2018.

Net cash used in investing activities totaled $635 for the six months ended June 30, 2017, all of which contributed by discontinued operation.

Cash Flow from Financing Activities

There were no financing activities for the six months ended June 30, 2018.

Net cash used in financing activities was $244,334 for the six months ended June 30, 2017, all of which contributed by discontinued operation.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.

Inflation

We do not believe our business and operations have been materially affected by inflation

Critical Accounting Policies and Estimates

Refer to note 3 in the accompanying consolidated financial statements.

Impact of Accounting Pronouncements

There were no recent accounting pronouncements that have had a material effect on the Company’s financial position or results of operations.

13

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not required for smaller reporting companies.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Regulations under the Securities Exchange Act of 1934 (the “Exchange Act”) require public companies to maintain “disclosure controls and procedures,” which are defined as controls and other procedures that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

We conducted an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of June 30, 2018. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of June 30, 2018, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses described below.

In light of the material weaknesses described below, we performed additional analysis to ensure our financial statements were prepared in accordance with generally accepted accounting principles. Accordingly, we believe that the financial statements included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented.

A material weakness is a control deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 2) or combination of control deficiencies that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. Management has identified the following two material weaknesses which have caused management to conclude that, as of June 30, 2018, our disclosure controls and procedures were not effective at the reasonable assurance level:

1. We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act which is applicable to us for the quarter ending June 30, 2018. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

2. We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

To address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.

14

Management's Report on Internal Control over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the company in accordance with as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the (i) effectiveness and efficiency of operations, (ii) reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, and (iii) compliance with applicable laws and regulations. Our internal controls framework is based on the criteria set forth in the Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Due to inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

A material weakness in internal controls is a deficiency in internal control, or combination of control deficiencies, that adversely affects the Company’s ability to initiate, authorize, record, process, or report external financial data reliably in accordance with accounting principles generally accepted in the United States of America such that there is more than a remote likelihood that a material misstatement of the Company’s annual or interim financial statements that is more than inconsequential will not be prevented or detected. In the course of making our assessment of the effectiveness of internal controls over financial reporting, we identified some material weaknesses in our internal control over financial reporting.

We lack sufficient personnel with the appropriate level of knowledge, experience and training in the application of accounting operations of our company. This weakness causes us to not fully identify and resolve accounting and disclosure issues that could lead to a failure to perform timely internal control and reviews.

Management is currently reviewing its staffing and systems in order to remedy the weaknesses identified in this assessment. However, because of the above condition, management’s assessment is that the Company’s internal controls over financial reporting were not effective as of June 30, 2018. Additionally, the Registrant’s management has concluded that the Registrant has a material weakness associated with its U.S. GAAP expertise.

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

Management's Remediation Initiatives

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures:

We intend to our personnel resources and technical accounting expertise within the accounting function. First, we intend to create a position to segregate duties consistent with control objectives of having separate individuals perform (i) the initiation of transactions, (ii) the recording of transactions and (iii) the custody of assets. Second, we intend to create a senior position to focus on financial reporting and standardizing and documenting our accounting procedures with the goal of increasing the effectiveness of the internal controls in preventing and detecting misstatements of accounting information. Third, we plan to appoint one or more outside directors to our board of directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management when funds are available to us. We anticipate the costs of implementing these remediation initiatives will be approximately $37,500 to $50,000 a year in increased salaries, legal and accounting expenses.

Management believes that the appointment of one or more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on our Board.

15

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

To the best knowledge of the officers and directors, the Company was not a party to any legal proceeding or litigation as of June 30, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit No.	Description
31.1	Chief Executive Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Chief Financial Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.
32.2	Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002
10.1	The following materials from Sino United Worldwide Consolidated Ltd.’s Quarterly Report on Form 10-Q for the period ended June 30, 2018 are formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheet; (ii) the Consolidated Statement of Comprehensive Income; (iii) the Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements. This Exhibit 101 is deemed not filed for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

16

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SINO UNITED WORLDWIDE CONSOLIDATED LTD.
Date: August    , 2018	By: /s/ Yanru Zhou
	Yanru Zhou
	Chief Executive Officer
	SINO UNITED WORLDWIDE CONSOLIDATED LTD.
Date: August    , 2018	By: /s/ Yanru Zhou
	Yanru Zhou
	Chief Financial Officer

17

EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes- Oxley Act of 2022

I, Yanru Zhou, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sino United Worldwide Consolidated Ltd. (the “Registrant”);

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 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 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 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.

Dated: August , 2018

By: /s/ Yanru Zhou        

Name: Yanru Zhou

Title: Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes- Oxley Act of 2022

I, Yanru Zhou, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sino United Worldwide Consolidated Ltd.;

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 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 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 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.

Dated: August , 2018

By: /s/ Yanru Zhou        

Name: Yanru Zhou

Title: Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Sino United Worldwide Consolidated Ltd. (the “Registrant”) on Form 10-Q for the quarter ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Yanru Zhou, as CEO of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

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

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

Dated: August , 2018

By: /s/ Yanru Zhou        

Name: Yanru Zhou

Title: Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Sino United Worldwide Consolidated Ltd. and will be retained by Sino United Worldwide Consolidated Ltd. and furnished to the Securities and Exchange Commission or its staff.

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Sino United Worldwide Consolidated Ltd. (the “Registrant”) on Form 10-Q for the quarter ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Yanru Zhou, as CFO of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(3) The Report fully complies with the requirements of section 13(a) or 15(d), as applicable of the Securities Exchange Act of 1934; and

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

Dated: August , 2018

By: /s/ Yanru Zhou        

Name: Yanru Zhou

Title: Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Sino United Worldwide Consolidated Ltd. and will be retained by Sino United Worldwide Consolidated Ltd. and furnished to the Securities and Exchange Commission or its staff.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2018 shares
Document And Entity Information
Entity Registrant Name	Sino United Worldwide Consolidated Ltd.
Entity Central Index Key	0001394108
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	33,503,604
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2018

XML

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash	$ 9,845	$ 50,044
Accounts receivable	20,000	15,000
Total Current Assets	29,845	65,044
Total Assets	29,845	65,044
Current Liabilities
Credit card payable	10,388	4,630
Convertible promissory note - related party	30,000	30,000
Convertible promissory note - other	65,000	65,000
Accrued expenses and other current liabilities	11,297	43,922
Total Current Liabilities	116,685	143,552
Total Liabilities	116,685	143,552
COMMITMENTS AND CONTINGENCIES
Stockholders' Deficiency
Common stock, $0.001 par value, 394,500,000 shares authorized; 33,503,604 shares issued and outstanding	33,504	33,504
Additional paid-in capital	1,647,731	1,647,731
Accumulated deficit	(1,768,075)	(1,759,743)
Total Stockholders' Deficiency	(86,840)	(78,508)
Total Liabilities and Stockholders' Deficiency	$ 29,845	$ 65,044

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	394,500,000	394,500,000
Common stock, shares issued	33,503,604	33,503,604
Common stock, shares outstanding	33,503,604	33,503,604

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 30,000		$ 60,000
Operating expenses
General and administrative	45,205	22,522	65,957	32,995
Total operating expenses	45,205	22,522	65,957	32,995
Loss from operations	(15,205)	(22,522)	(5,957)	(32,995)
Other expense:
Interest expense - related party	(375)		(750)
Interest expense - other	(812)		(1,625)
Total other expense	(1,187)		(2,375)
Loss from continuing operations before income tax provision	(16,392)	(22,522)	(8,332)	(32,995)
Income tax provision
Loss from continuing operations	(16,392)	(22,522)	(8,332)	(32,995)
Discontinued operations
Income from discontinued operations, net of tax		114,387		278,949
Net income (loss)	(16,392)	91,865	(8,332)	245,954
Other comprehensive income
Foreign currency translation adjustment		7,910		46,811
Comprehensive income (loss)	$ (16,392)	$ 99,775	$ (8,332)	$ 292,765
Earnings (loss) per share
Basic - continuing operation	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Basic - discontinued operation		0.00		0.00
Basic - Total	(0.00)	0.00	(0.00)	0.00
Diluted - continuing operation	(0.00)	(0.00)	(0.00)	(0.00)
Diluted - discontinued operation		0.00		0.00
Diluted - Total	$ (0.00)	$ 0.00	$ (0.00)	$ 0.00
Weighted average shares outstanding
Basic	33,503,604	58,985,937	33,503,604	58,985,937
Diluted	33,503,604	58,985,937	33,503,604	58,985,937

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)	$ (8,332)	$ 245,954
Net income from discontinued operation		278,949
Net loss from continuing operation	(8,332)	(32,995)
Changes in operating assets and liabilities:
Accounts receivables	(5,000)
Credit card payable	5,758	4,347
Accrued expenses and other current liabilities	(32,625)	(3,881)
Net cash used in continuing operation	(40,199)	(32,529)
Net cash provided by discontinued operation		259,122
Net cash provided by (used in) operating activities	(40,199)	226,593
CASH FLOW FROM INVESTING ACTIVITIES
Net cash used in continuing operation
Net cash used in discontinued operation		(635)
Net cash used in investing activities		(635)
CASH FLOW FROM FINANCING ACTIVITIES
Net cash used in continuing operation
Net cash used in discontinued operation		(244,334)
Net cash used in financing activities		(244,334)
Effect of exchange rate changes on cash		17,459
DECREASE IN CASH	(40,199)	(917)
Cash - beginning of period	50,044	3,016
Cash - end of period	9,845	2,099
Supplement disclosure information
Cash paid for interest - continuing operation
Cash paid for interest - discontinued operation		16,301
Cash paid for income taxes - continuing operation
Cash paid for income taxes - discontinued operation		$ 2,735

XML

Organization and Basis of presentation

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of presentation

Note 1 – Organization and Basis of presentation

Organization

Sino United Worldwide Consolidated Ltd. (the “Company”) provides IT management consulting services. The Company is also developing new businesses in various fields through careful review and critical selection of new growth businesses. The Company is planning to strengthen our core competencies in high technology and blockchain related businesses, such as blockchain dapps technology, fintech services, professional consultancy for ICO’s, and other high potential critical blockchain projects.

Basis of presentation and consolidation

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of June 30, 2018 and the results of operations and cash flows for the periods ended June 30, 2018 and 2017. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended June 30, 2018 is not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2018. The balance sheet on December 31, 2017 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2017 as included in our Annual Report on Form 10-K.

Certain amounts in last year’s financial statements have been reclassified to conform to current year presentation.

XML

Going Concern

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

Note 2 – Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company had a working capital deficit of $86,840, an accumulated deficit of $1,768,075 and a stockholders’ deficiency of $86,840 as of June 30, 2018. The Company did not generate sufficient cash or income from its continuing operation. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The company is developing new businesses in various fields. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support the Company’s working capital requirements. To the extent that funds generated from any private placements, public offering and/or bank financing are insufficient to support the Company’s working capital requirements, the Company will have to raise additional working capital from additional financing. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, the Company may not be able continue its operations.

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3 — Summary of Significant Accounting Policies

Translation Adjustment

The Company’s financial statements are presented in the U.S. dollar ($), which is the Company’s reporting and functional currency. The functional currency of the Company’s subsidiaries is TWD. Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of comprehensive income (loss).

In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of comprehensive income (loss) and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from TWD into U.S. dollar are recorded in stockholders’ equity (deficiency) as part of accumulated other comprehensive income. The exchange rates used for the financial statements in accordance with ASC 830, Foreign Currency Matters, are as follows:

Average Rate for the period	June 30, 2018		June 30, 2017
Taiwan dollar(TWD)		—		1
United States Dollar($)		—		0.0326
Exchange Rate at		June 30, 2018		June 30, 2017
Taiwan dollar(TWD)		—		1
United States Dollar($)		—		0.0330

The subsidiary in Taiwan was sold as of September 30, 2017.

Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that any recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

XML

Discontinued Operation

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operation

NOTE 4 – Discontinued Operation

On September 30, 2017, pursuant to agreements with one of our directors, Li-An Chu, the Company transferred the 100% ownership in Jinchih, to Li-An Chu in exchange for cancellation of loan payable of $379,254 to Li-An Chu and cancellation of total 25,503,333 shares of the Company’s common stock owned by a group of stockholders, including Li-An Chu. As a result of these transactions, Jinchih is no longer a wholly owned subsidiary of the Company as of September 30, 2017. Since Jinchih was sold back to Li-An Chu who is the Company’s director, CEO and CFO at the time of the transaction, no gain or loss was recorded. The net gain of $99,822 from the sale of Jinchih was included in stockholders’ equity.

The results of operations of discontinued operations for the three months ended June 30, 2018 and 2017 are as following:

	2018		2017
Revenue	$	—	$	1,132,506
Cost of goods sold		—		(874,425	)
General and administrative expenses		—		(98,374	)
Depreciation and amortization		—		(12,542	)
Interest expense, net of interest income		—		(8,035	)
Income tax provision		—		(24,743	)
Income from discontinued operations	$	—	$	114,387

The results of operations of discontinued operations for the six months ended June 30, 2018 and 2017 are as following:

	2018		2017
Revenue	$	—	$	1,966,993
Cost of goods sold		—		(1,414,628	)
General and administrative expenses		—		(172,812	)
Depreciation and amortization		—		(25,929	)
Interest expense, net of interest income		—		(14,914	)
Income tax provision		—		(59,761	)
Income from discontinued operations	$	—	$	278,949

XML

Convertible Promissory Note

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Convertible Promissory Note

NOTE 5 – Convertible Promissory Note

On October 1, 2017, Mr. Tee-Keat Ong, the Chairmen of the Board of Directors, and the Company entered into a loan agreement pursuant to which Mr. Tee-Keat Ong agreed to lend the Company $30,000 initially with future loan amount up to $1,000,000. On the same date, the Company issued a promissory note to Mr. Tee-Keat Ong for the principal amount of $30,000. The promissory note bears interest at five percent (5%) per annum and is due on demand. Pursuant to the terms of the note, the note is convertible into the Company’s common stock at a conversion price of $0.001 per share. The note began to accrue interest at 10% per annum when it is past due.

On October 1, 2017, the Company entered into a loan agreement with Ms. Shoou Chyn Kan, an unrelated individual. Pursuant to the loan agreement, Ms. Shoou Chyn Kan agreed to lend the Company $65,000 initially with future loan amount up to $1,000,000. On the same date, the Company issued a promissory note to Ms. Shoou Chyn Kan for the principal amount of $65,000. The promissory note bears interest at five percent (5%) per annum and is due on demand. Pursuant to the terms of the note, the note is convertible into the Company’s common stock at a conversion price of $0.001 per share. The note began to accrue interest at 10% per annum when it is past due.

XML

Related Party Transactions and Balances

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions and Balances

NOTE 6 – Related Party Transactions and Balances

As of June 30, 2018 and December 31, 2017, balance of convertible promissory note with related party was $30,000 (See Note 5). The Company accrued interest of $375 and $750 for the three and six months ended June 30, 2018.

XML

Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 7 – Income Taxes

The Company was incorporated in the United States and are subject to income tax according to U.S. tax law.

A reconciliation of the provision for income taxes to the Company’s effective income tax rate for continuing operation is as follows:

	Six Months Ended June 30,
	2018			2017
Pre-tax loss	$	(8,332	)	$	(32,995	)
U.S. federal corporate income tax rate		21	%		35	%
Expected U.S. income tax benefit		(1,750	)		(11,548	)
Change of valuation allowance		1,750			11,548
Effective tax expense	$	—		$	—

As of December 31, 2017, the Company has approximately $1 million net operating loss carryforwards available in US, which will start to expire in 2026. In six months ended June 30, 2018, the Company has approximately $8,000 net operating loss carryforward available in the U.S., which can be used to offset 80 percent of future taxable income and can be carried forward indefinitely. It is more likely than not that the deferred tax assets cannot be utilized in the future because there will not be significant future earnings from the entity which generated the net operating loss. Therefore, the Company has set up 100% valuation allowance on deferred tax assets resulting from net operating loss incurred in the U.S.

As of June 30, 2018 and December 31, 2017, the Company has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods, and does not believe that there will be any significant increases or decreases of unrecognized tax benefits within the next twelve months. No interest or penalties relating to income tax matters have been imposed on the Company during the three and six months ended June 30, 2018 and 2017, and no provision for interest and penalties is deemed necessary as of June 30, 2018 and December 31, 2017.

The U.S. Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. Since the Company has no foreign subsidiaries after it disposed its Taiwan subsidiary on September 30, 2017, the Company believes that Tax Act will not have significant impact on the Company’s financial statements.

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Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

NOTE 8 – Subsequent Events

The Company has evaluated the existence of significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Translation Adjustment

Translation Adjustment

The Company’s financial statements are presented in the U.S. dollar ($), which is the Company’s reporting and functional currency. The functional currency of the Company’s subsidiaries is TWD. Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of comprehensive income (loss).

In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of comprehensive income (loss) and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from TWD into U.S. dollar are recorded in stockholders’ equity (deficiency) as part of accumulated other comprehensive income. The exchange rates used for the financial statements in accordance with ASC 830, Foreign Currency Matters, are as follows:

Average Rate for the period	June 30, 2018		June 30, 2017
Taiwan dollar(TWD)		—		1
United States Dollar($)		—		0.0326
Exchange Rate at		June 30, 2018		June 30, 2017
Taiwan dollar(TWD)		—		1
United States Dollar($)		—		0.0330

The subsidiary in Taiwan was sold as of September 30, 2017.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that any recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Exchange rates used for financial statements

Average Rate for the period	June 30, 2018		June 30, 2017
Taiwan dollar(TWD)		—		1
United States Dollar($)		—		0.0326
Exchange Rate at		June 30, 2018		June 30, 2017
Taiwan dollar(TWD)		—		1
United States Dollar($)		—		0.0330

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Discontinued Operation (Tables)

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Results of operations of discontinued operations

The results of operations of discontinued operations for the three months ended June 30, 2018 and 2017 are as following:

	2018		2017
Revenue	$	—	$	1,132,506
Cost of goods sold		—		(874,425	)
General and administrative expenses		—		(98,374	)
Depreciation and amortization		—		(12,542	)
Interest expense, net of interest income		—		(8,035	)
Income tax provision		—		(24,743	)
Income from discontinued operations	$	—	$	114,387

The results of operations of discontinued operations for the six months ended June 30, 2018 and 2017 are as following:

	2018		2017
Revenue	$	—	$	1,966,993
Cost of goods sold		—		(1,414,628	)
General and administrative expenses		—		(172,812	)
Depreciation and amortization		—		(25,929	)
Interest expense, net of interest income		—		(14,914	)
Income tax provision		—		(59,761	)
Income from discontinued operations	$	—	$	278,949

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income tax provision and income tax rate reconciliation

	Six Months Ended June 30,
	2018			2017
Pre-tax loss	$	(8,332	)	$	(32,995	)
U.S. federal corporate income tax rate		21	%		35	%
Expected U.S. income tax benefit		(1,750	)		(11,548	)
Change of valuation allowance		1,750			11,548
Effective tax expense	$	—		$	—

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Going Concern (Details Narrative) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital deficit	$ (86,840)
Accumulated deficit	(1,768,075)	$ (1,759,743)
Stockholders' deficiency	$ (86,840)	$ (78,508)

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Summary of Significant Accounting Policies - Exchange rates used for interim financial statements (Details)	Jun. 30, 2018	Jun. 30, 2017
One Taiwan dollar (TWD) to United States dollar ($) exchange rate		0.0330
Average Rate for the year
One Taiwan dollar (TWD) to United States dollar ($) exchange rate		0.0326

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Discontinued Operation - Results of operations of discontinued operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Revenue		$ 1,132,506		$ 1,966,993
Cost of goods sold		(874,425)		(1,414,628)
General and administrative expenses		(98,374)		(172,812)
Depreciation and amortization		(12,542)		(25,929)
Interest expense, net of interest income		(8,035)		(14,914)
Income tax provision		(24,743)		(59,761)
Income from discontinued operations		$ 114,387		$ 278,949

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Discontinued Operation (Details Narrative)	1 Months Ended
	Sep. 30, 2017 USD ($) shares
Discontinued Operations and Disposal Groups [Abstract]
Cancellation of debt	$ (379,254)
Company's common stock canceled by stockholders | shares	(25,503,333)
Net gain from sale of Jinchih included in stockholders' equity	$ 99,882

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Convertible Promissory Note (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2018	Oct. 01, 2017
Note Payable (1)
Initial loan amount	$ 30,000
Future loan amount, maximum	$ 1,000,000
Promissory note issued, amount		$ 30,000
Promissory note issued, interest rate		5.00%
Promissory note issued, conversion price per share		$ 0.001
Promissory note issued, interest rate when past due	10.00%
Note Payable (2)
Initial loan amount	$ 65,000
Future loan amount, maximum	$ 1,000,000
Promissory note issued, amount		$ 65,000
Promissory note issued, interest rate		5.00%
Promissory note issued, conversion price per share		$ 0.001
Promissory note issued, interest rate when past due	10.00%

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Related Party Transactions and Balances (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Related Party Transactions [Abstract]
Balance of convertible promissory note with related party	$ 30,000	$ 30,000	$ 30,000
Accrued interest	$ 375	$ 750

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Income Taxes - Income tax provision and income tax rate reconciliation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Pre-tax income (loss)	$ (16,392)	$ (22,522)	$ (8,332)	$ (32,995)
U.S. federal corporate income tax rate			21.00%	35.00%
Expected U.S. income tax expense (credit)			$ (1,750)	$ (11,548)
Change of valuation allowance			1,750	11,548
Effective tax expense