Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 3 - Discontinued Operations

On January 7, 2020, the Company transferred its entire interest in Bright Swallow to Y-Tone (Worldwide) Limited, an unrelated third party, for cash consideration of $2,500,000, pursuant to a formal agreement entered into on January 7, 2020. The Company received the payment on May 11, 2020.

As of December 31, 2019 and subsequently, operations of Bright Swallow have been reported as discontinued operations in the Company’s unaudited condensed consolidated financial statements. Accordingly, assets, liabilities, revenues, expenses and cash flows related to Bright Swallow have been reclassified in the consolidated financial statements as discontinued operations for all periods presented.

The following table summarizes the net assets of Bright Swallow at the date of disposal (January 7, 2020):

Cash and cash equivalents	$	1,462,200
Accounts receivable, net		969,841
Advance to suppliers		609,935
Accounts payable		(948	)
Advance from customers		(126,916	)
Accrued liabilities and other payables		(2,553	)
Income tax payable		(85,028	)
Net assets of Bright Swallow upon disposal		2,826,531
Cash consideration received		(2,500,000	)
Loss on disposal of subsidiary	$	(326,531	)

The loss on disposal of discontinued operations in relation to Bright Swallow for the six months ended June 30, 2020 was $326,531.