10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10−Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2021 

☐ 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: 333-196336

PORTER HOLDING INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in Its Charter)

Nevada	42-1777496
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

36th Floor, Shenzhen Development Center, #2010, Renmin South Road

Luohu District, Shenzhen, Guangdong, China, 518001

(Address of principal executive offices, Zip Code)

+86-755-22230666

(Registrant’s telephone number, including area code)

_____________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 12b-2 of the Exchange Act.

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 ☒

The number of shares outstanding of each of the issuer’s classes of common stock, as of May 14, 2021 is as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.001 par value	508,110,000

PORTER HOLDING INTERNATIONAL, INC.

TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30
PART II
OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	31

PART I

FINANCIAL INFORMATION

ITEM 1.          FINANCIAL STATEMENTS (UNAUDITED).

PORTER HOLDING INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Table of Contents

	Page Number
Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020	4
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended March 31, 2021 and 2020	5
Condensed Consolidated Statements of Changes in Deficit for the Three Months Ended March 31, 2021 and 2020	6
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020	7
Notes to Condensed Consolidated Financial Statements	8

3

PORTER HOLDING INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In U.S. dollars)

	March 31, 2021			December 31, 2020
ASSETS
CURRENT ASSETS
Cash	$	661,997		$	24,912
Accounts receivable, net of $30,933 and $30,933 allowance for doubtful accounts as of March 31, 2021 and December 31, 2020, respectively		18,861			18,502
Prepayments and other receivables		35,698			46,315
Due from shareholders		333,952			335,420
Total current assets		1,050,508			425,149
NON-CURRENT ASSETS
Long-term rental deposits		38,434			38,592
Long-term prepayments		4,660			5,758
Equipment, net		21,389			24,434
Operating lease right-of-use assets		480,348			539,945
Total non-current assets		544,831			608,729
TOTAL ASSETS	$	1,595,339		$	1,033,878
LIABILITIES AND DEFICIT
CURRENT LIABILITIES
Accounts payable	$	120,785		$	145,644
Accruals and other payables		312,603			683,482
Deferred revenue		290,173			355,398
Taxes payable		80,411			91,596
Amounts due to shareholders		2,840,377			2,046,988
Operating lease liabilities – current		277,667			216,180
Total current liabilities		3,922,016			3,539,288
NON-CURRENT LIABILITIES
Operating lease liabilities - non-current		274,728			347,656
TOTAL LIABILITIES		4,196,744			3,886,944
COMMITMENTS AND CONTINGENCIES
DEFICIT
Common stock, par value $0.001 per share; 750,000,000 shares authorized, 508,110,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020		508,110			508,110
Additional paid-in capital		1,128,241			1,128,241
Accumulated deficit		(4,243,590	)		(4,489,416	)
Accumulated other comprehensive loss		(71,389	)		(80,923	)
Total Porter Holding International, Inc. stockholders’ deficit		(2,678,628	)		(2,933,988	)
Non-controlling interests		77,223			80,922
Total deficit		(2,601,405	)		(2,853,066	)
TOTAL LIABILITIES AND DEFICIT	$	1,595,339		$	1,033,878

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

PORTER HOLDING INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In U.S. dollars)

	Three Months Ended March 31,
	2021			2020
REVENUE	$	14,487		$	427,266
COST OF REVENUE		(6,844	)		(373,974	)
GROSS PROFIT		7,643			53,292
OPERATING EXPENSES		(301,637	)		(628,074	)
LOSS FROM OPERATIONS		(293,994	)		(574,782	)
OTHER INCOME, NET		536,416			20,018
NET INCOME (LOSS) BEFORE TAXES		242,422			(554,764	)
Income tax expense		-			-
NET INCOME (LOSS)		242,422			(554,764	)
Less: Net loss attributable to non-controlling interests		(3,404	)		(2,697	)
Net income (loss) attributable to Porter Holding International, Inc. common stockholders		245,826			(552,067	)
Other comprehensive income (loss)
Foreign currency translation income		9,239			20,003
Total Comprehensive income (loss)		251,661			(534,761	)
Less: comprehensive loss attributable to non-controlling interests		(3,699	)		(5,724	)
Comprehensive income (loss) attributable to Porter Holding International, Inc. common stockholders	$	255,360		$	(529,037	)
Basic and diluted income (loss) per share	$	-	*	$	-	*
Weighted average number of common shares outstanding - basic and diluted		508,110,000			508,110,000

* Less than $0.01 per share 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

PORTER HOLDING INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN DEFICIT

FOR THE THREE MONTHS ENDED March 31, 2021 and 2020

(Unaudited)

(In U.S. dollars)

	Porter Holding International, Inc. Stockholders
	Common stock				Additional					Accumulated other			Non-
	Number				paid-in		Accumulated			comprehensive			controlling
	of shares		Amount		capital		deficit			income (loss)			interests			Total
Balance at December 31, 2020		508,110,000	$	508,110	$	1,128,241	$	(4,489,416	)	$	(80,923	)	$	80,922		$	(2,853,066	)
Net income (loss)		-		-		-		245,826			-			(3,404	)		242,422
Foreign currency translation adjustment		-		-		-		-			9,534			(295	)		9,239
Balance at March 31, 2021		508,110,000	$	508,110	$	1,128,241	$	(4,243,590	)	$	(71,389	)	$	77,223		$	(2,601,405	)

	Porter Holding International, Inc. Stockholders
	Common stock				Additional					Accumulated other		Non-
	Number				paid-in		Accumulated			comprehensive		controlling
	of shares		Amount		capital		deficit			income		interests			Total
Balance at December 31, 2019		508,110,000	$	508,110	$	1,077,986	$	(2,200,932	)	$	92,800	$	182,406		$	(339,630	)
Net loss		-		-		-		(552,067	)		-		(2,697	)		(554,764	)
Foreign currency translation adjustment		-		-		-		-			23,030		(3,027	)		20,003
Balance at March 31, 2020		508,110,000	$	508,110	$	1,077,986	$	(2,752,999	)	$	115,830	$	176,682		$	(874,391	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

PORTER HOLDING INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In U.S. dollars)

	Three Months Ended March 31,
	2021			2020
Cash flows from operating activities
Net income (loss)	$	242,422		$	(554,764	)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization		2,977			13,432
Amortization of operating lease right-of-use assets		58,010			75,102
Allowance for doubtful accounts		-			164,082
Changes in assets and liabilities
Accounts receivable		(376	)		(941	)
Prepayments and other receivables		11,384			(29,508	)
Operating lease liabilities		(9,234	)		(77,359	)
Accounts payable		(24,526	)		(5,713	)
Accruals and other payables		(368,193	)		109,735
Deferred revenue		(64,461	)		42,410
Tax payable		(10,928	)		(19,858	)
Net cash used in operating activities		(162,925	)		(283,382	)
Cash flows from investing activities
Purchase of equipment		-			(21,078	)
Net cash used in investing activities		-			(21,078	)
Cash flows from financing activities
Advances from shareholders		1,530,917			1,002,142
Repayments to shareholders		(720,278	)		(818,933	)
Net cash provided by financing activities		810,639			183,209
Effect of exchange rates on cash		(10,629	)		39,247
Net increase (decrease) in cash		637,085			(82,004	)
Cash at beginning of period		24,912			224,733
Cash at end of period	$	661,997		$	142,729
Supplemental of cash flow information
Cash paid for interest expenses	$	-		$	-
Cash paid for income tax	$	-		$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

1. ORGANIZATION AND BUSINESS

Porter Holding International, Inc. (formerly known as Uni Line Corp., “ULNV” or the “Company”) was incorporated in the State of Nevada on September 5, 2013.

As of March 31, 2021, the Company has subsidiaries incorporated in countries and jurisdictions including the People’s Republic of China (“PRC”), Hong Kong, and Seychelles As of March 31, 2021, the Company also effectively controls a number of variable interest entities (“VIEs”) through the Primary Beneficiaries, as defined below. The VIEs include:

(a)     Shenzhen Porter Warehouse E-Commerce Co. Ltd. (“Porter E-Commerce”);

(b)     Shenzhen Porter Shops Lot Technology Co., Ltd. (“Porter Consulting”); and

(c)     Shenzhen Porter Commercial Perspective Network Co. Ltd. (“Porter Commercial”).

As a result of the above contractual arrangements, or the Contractual Arrangements, PGL has substantial control over the VIE Entities’ daily operations and financial affairs, election of their senior executives and all matters requiring shareholder approval. Furthermore, as the primary beneficiary of the VIE Entities, the Company is entitled to consolidate the financial results of the VIE Entities in its own consolidated financial statements under Financial Accounting Standards Board Accounting Standard Codification (“ASC”) Topic 810 and related subtopics related to the consolidation of variable interest entities, or ASC Topic 810.

In August 2019, Porter E-Commerce acquired 60% of the equity interest in Shenzhen Qianhai Maihuolang E-commerce Co., Ltd. (“Maihuolang E-commerce”), which is engaged in the business of online E-commerce. In October 2019, the shareholders of Maihuolang E-commerce resolved that the registered capital from RMB 5,000,000 ($718,205) to RMB 5,263,157 ($756,005), and such increase in registered capital would be contributed by the non-controlling interest shareholder. Consequently, the equity interest in Maihuolang E-commerce owned by the Company was changed to 57%. On July 15, 2020, Porter E-Commerce entered into an Equity Transfer Agreement (the “Agreement”) with Mr. Kezhan Ma, whereby Porter E-Commerce transferred its 57% equity interests in Maihuolang E-Commerce to Mr. Kezhan Ma, for cash consideration of RMB 650,000 (approximately $95,735) which amount is received on July 27, 2020. The Company did not report the operation of Maihuolang E-commerce as discontinued operation as the sale did not represent a strategic shift that would have a major effect on the Company’s operations and financial results. An impairment loss of $52,603 and a disposal gain of $4,791 were recognized.

In July 2020, the shareholders of Porter Consulting resolved that the registered capital from RMB 1,000,000 ($147,284) to RMB 1,176,470 ($173,275), and such increase in registered capital would be contributed by the non-controlling interest shareholder. Consequently, the equity interest in Porter Consulting owned by the Company was changed to 85%. Besides, Porter Consulting change from Shenzhen Yihuilian Information Consulting Co. Ltd. to Shenzhen Porter Shops Lot Technology Co., Ltd.

The Company and its subsidiaries and VIE entities (collectively referred to as the “Company”) focus its business as an innovative O2O (Online to Offline) business platform operator covering both online E-commerce and offline commercial chain entity of three dimensional synchronous operation together with integrated comprehensive services for merchant clients, service income from organizing and delivering an event and forum, and third-party payment service. Starting from the second quarter of 2018, the Company provides investment and corporate management consulting services to its clients.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries and its variable interest entities. All significant inter-company transactions and balances have been eliminated in consolidation. 

8

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

The unaudited interim condensed consolidated financial information as of March 31, 2021, and for the three months periods ended March 31, 2021 and 2020 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have not been included. The unaudited interim condensed consolidated financial information should be read in conjunction with the Consolidated Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, previously filed with the SEC on April 15, 2021.

In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these unaudited condensed consolidated financial statements, which are of a normal and recurring nature, have been included. The results reported in the unaudited condensed consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year.

Liquidity and Going Concern

The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements.

The Company has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) its recurring loss from operations, despite approximately $242,422 net income attributable to the Company’s stockholders for the three months ended March 31, 2021 due to a one time compensation from a project terminated by counter party, (2) its accumulated deficit of approximately $4,243,590 as of March 31, 2021 and (3) the fact that the Company had negative operating cash flows of approximately $162,925 for the three months ended March 31, 2021.

In evaluating if there is substantial doubt about its ability to continue as a going concern, the Company is trying to alleviate the going concern risk through (1) increasing cash generated from operations by controlling operating expenses and expanding more revenue streams, (2) loans from existing directors and shareholders, and (3) equity or debt financing. The Company has certain plans to mitigate these adverse conditions and to increase the liquidity of the Company.

As of March 31, 2021, our cash balance was $661,997 and our current liabilities exceed current assets by $2,871,508. Our cash balance as of March 31, 2021 may not be sufficient to support our operations for the next 12 months after the date that the financial statements issued. The negative operating results of cash flow and working capital for the quarter ended March 31, 2021 raise substantial doubt about our ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern.

During January to March 2021, the Company received loans from shareholders with approximately $1.4 million. On an on-going basis, the Company also received and will continue to receive financial support commitments from the Company’s related parties. However, if the Company is unable to obtain the necessary additional capital on a timely basis and on acceptable terms, the Company will be unable to implement its current plans for expansion, repay debt obligations or respond to competitive market pressures, which will have negative influence upon its business, prospects, financial condition and results of operations. 

The Company believes if it is unable to obtain its resources to fund operations, it may be required to delay, scale back or eliminate some or all of its planned operations, which may have a material adverse effect on its business, results of operations and ability to operate as a going concern.

9

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

Use of Estimates

The preparation of these unaudited condensed consolidated financial statements requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its unaudited condensed consolidated financial statements.

VIE Consolidation

The Company’s VIEs with the exception of Weifang Portercity and Porter Consulting, are wholly owned by Mr. Zonghua Chen and Ms. Xiaomei Xiong as nominee shareholders. For the consolidated VIEs, management made evaluations of the relationships between the Company and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Company controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Company is the primary beneficiary of its consolidated VIEs.

PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses in which the Company is engaged or could be deemed to be engaged. Consequently, the Company conducts certain of its operations and businesses in the PRC through its VIEs. The Company consolidates in its consolidated financial statements all of the VIEs of which the Company is the primary beneficiary.

10

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

The following financial information of the Company’s consolidated VIEs (including subsidiary of VIEs) is included in the accompanying unaudited condensed consolidated financial statements:

	March 31, 2021		December 31, 2020
ASSETS
CURRENT ASSETS
Cash	$	648,246	$	13,013
Accounts receivable, net		3,491		3,132
Prepayments and other receivables		35,650		46,026
Due from shareholders		434,192		435,975
Amount due from the Company and its non-VIE subsidiaries (1)		525,491		441,759
Total current assets		1,647,070		939,905
NON-CURRENT ASSETS
Long term rental deposit		38,434		38,592
Long term prepayment		4,660		5,758
Equipment, net		20,477		23,410
Operating lease right-of-use assets		480,348		539,945
Total non-current assets		543,919		607,705
TOTAL ASSETS	$	2,190,989	$	1,547,610
CURRENT LIABILITIES
Accounts payable	$	120,785	$	145,644
Accruals and other payables		291,985		645,073
Deferred revenue		290,173		355,398
Tax payable		80,411		91,596
Amounts due to shareholders of the Company		3,073,314		2,294,151
Operating lease liability - current		277,667		216,180
Total current liabilities		4,134,335		3,748,042
NON-CURRENT LIABILITIES
Operating lease liability - non-current		274,728		347,656
TOTAL LIABILITIES	$	4,409,063	$	4,095,698

(1) Amount due from the Company and its non-VIE subsidiaries consists of intercompany from other non-VIE subsidiaries within the Company. 

11

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

	Three months ended March 31,
	2021		2020
Net revenue	$	14,487	$	377,313
Net income (loss)	$	326,454	$	(464,933	)

	Three months ended March 31,
	2021			2020
Net cash used in operating activities	$	(68,456	)	$	(171,314	)
Net cash used in investing activities		-			(21,078	)
Net cash provided by financing activities		710,616			109,283

Revenue Recognition

The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five step model prescribed under Accounting Standards Update (“ASU”) No. 2014-09: (i) identify contract(s) with a customer: Due to impact of COVID-19, the Company, starting from first quarter of 2020, determines to receive cash prior to performing investment and corporate management consulting services in order to ensure probable collection of consideration and hence existence of a contract; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation.

Revenues are recognized when control of the promised goods or services is transferred to the customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expect to be entitled to in exchange for those goods or services.

The Company via Porter Consulting earns commissions of $8,609 and $12,450 for the three months ended March 31, 2021 and 2020 respectively, primarily from a third-party payment service provider when China UnionPay card transactions are completed and settled. Revenue related to commissions is recognized in the statement of operation at the time when the underlying transaction is completed.

The third-party payment provider is a China UnionPay card acquiring institution and earns processing fees from China UnionPay card transactions. The Company’s performance obligation is to promote, via Porter Consulting, the payment service of the third-party payment service provider to merchants in Shenzhen, for which the Company shares a portion of the processing fees earned by the third-party payment service provider from China UnionPay, as commission.

Starting from the second quarter of 2018, the Company via Portercity provides various consulting services to its clients, especially to those who have the intention to be publicly listed in the stock exchanges in the United States and other countries. The Company categorizes its consulting services into three phases:

Phase I consulting services primarily include due diligence review, market research and feasibility study, business plan drafting, accounting record review, and business analysis and recommendations etc. Management estimates that Phase I normally takes around three months to complete based on its past experiences.

Phase II consulting services primarily include reorganization, pre-listing education and tutoring, talent search, legal and audit firm recommendation and coordination, VIE contracts and other public-listing related documents review, merger and acquisition planning, investor referral and pre-listing equity financing source identification and recommendation, independent directors and audit committee candidates recommendation; shell company identification and recommendation for customers expecting to become publicly listed through reverse merger transaction; etc. Management estimates that Phase II normally takes about five months to complete based its past experiences.

12

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

Phase III consulting services primarily include assistance in preparation of customers’ registration statement under IPO transactions or Form 8-K under reverse merger transactions; assistance in answering comments and questions received from regulatory agencies etc. Management believes it is very difficult to estimate the timing of this phase of service as the completion of Phase III services is not within the Company’s control.

Under ASC Topic 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable. Each phase of consulting services is standalone and fees associated with each phase are usually clearly identified in service agreements. Revenue from providing Phase I and Phase II consulting services to customers is recognized based on the output methods, including surveys of performance completed to date or milestones reached of each phase only when the Company has an enforceable right to payment for performance completed to date. Otherwise, such revenue is recognized at a point in time when services are delivered and accepted by customers. Revenue from providing Phase III consulting services to customers is recognized upon completion of reverse merger transaction or IPO transaction, which is evidenced by filing of 8-K for reverse merger transaction or receipt of effective notice from regulatory agencies for IPO transaction. Revenue that has been billed and not yet recognized is reflected as deferred revenue on the consolidated balance sheets.

Depending on the complexity of the underlying service arrangement and related terms and conditions, significant judgments, assumptions and estimates may be required to determine when substantial delivery of contract elements has occurred, whether any significant ongoing obligations exist subsequent to contract execution, whether amounts due are collectible and the appropriate period or periods in which, or during which, the completion of the earnings process occurs. Depending on the magnitude of specific revenue arrangements, adjustment may be made to the judgments, assumptions and estimates regarding contracts executed in any specific period. Service income from consulting services, totaled nil and $305,660 for the three months period ended March 31, 2021 and 2020, is recognized when the service is performed.

In accordance with ASC 606, the Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned by PPBGL as commissions. When the Company is primarily obligated in a transaction, is subject to inventory risk, has latitude in establishing prices and selecting suppliers, or has several but not all of these indicators, revenues should be recorded on a gross basis. When the Company is not the primary obligor, does not bear the inventory risk and does not have the ability to establish the price, revenues are recorded on a net basis. The Company determined that it is not the primary obligor in its trading business. For the three months period ended March 31, 2021 and 2020, the Company recognized a net revenue of $3,236 and $11,928, when control of the products has transferred, being at the point the products are delivered to the customer and the customer has accepted the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.

Starting from the first quarter of 2019, the Company, via PPBGL, Maihuolang E-commerce and Porter Commercial, provides various training services to its clients, primarily related to e-commerce platform operation, expansion of channels and promotion strategy, and capital market operation, via live and online sessions. Under ASC Topic 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable. The fees associated with the course of training sessions are clearly identified in service agreements. Training service revenue is recognized at the time when the training sessions stipulated in the contract are completed. The Company recognized $1,947 and $77,778 for the three months period ended March 31, 2021 and 2020.

Practical expedients and exemption

The company has not incurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Other service income is earned when services have been rendered.

13

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

Revenue by major product line

	For Three Months Ended March 31,
	2021		2020
Investment and corporate management consulting services	$	-	$	305,660
Training service		1,947		77,778
Third-party payment service		8,609		12,450
Trading business		3,236		11,928
Others		695		19,450
	$	14,487	$	427,266

Revenue by recognition over time vs point in time

	For Three Months Ended March 31,
	2021		2020
Revenue by recognition over time	$	-	$	305,660
Revenue by recognition at a point in time		14,487		121,606
	$	14,487	$	427,266

Revenue by recognition gross vs net

	For Three Months Ended March 31,
	2021		2020
Revenue by recognition gross	$	11,251	$	415,338
Revenue by recognition net		3,236		11,928
	$	14,487	$	427,266

Foreign Currency and Foreign Currency Translation

The functional currency of the Company and PGL is the United States dollar (“US dollar”). The functional currency of the PPBGL is the Hong Kong dollar. The Company’s subsidiary and VIEs with operations in PRC uses the local currency, the Chinese Yuan (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements.

Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the statements of comprehensive loss.

The unaudited condensed consolidated financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s statement of operation. Differences resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the unaudited condensed consolidated balance sheets.

14

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

Translation of amounts from RMB into U.S. dollars has been made at the following exchange rates:

Balance sheet items, except for equity accounts
March 31, 2021		RMB6.5518 to $1	HKD7.7746 to $1
December 31, 2020		RMB6.5250 to $1	HKD7.7534 to $1
Statement of operation and cash flows items
For the three-month period ended March 31, 2021		RMB6.4817 to $1	HKD7.7577 to $1
For the three-month period ended March 31, 2020		RMB6.9786 to $1	HKD7.7708 to $1

Net loss per share of common stock

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the statement of operation for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying unaudited condensed consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

	Three Months Ended March 31,
	2021		2020
Net income (loss) attributable to Porter Holding International, Inc.	$	245,826	$	(552,067	)
Weighted average number of common shares outstanding - basic and diluted		508,110,000		508,110,000
Basic and diluted loss per share	$	-	$	-

The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

Segments

The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company reports two reportable segments in consulting services, as well as training services and others.

Fair Value of Financial Instruments

U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is:

Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – include other inputs that are directly or indirectly observable in the market place.

Level 3 – unobservable inputs which are supported by little or no market activity.

The carrying value of the Company’s financial instruments, including cash, accounts and other receivables, other current assets, accounts and other payables, and other short-term liabilities approximate their fair value due to their short maturities.

15

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. The lease has remaining lease term of approximately four years. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term.

ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets.

ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities.

The Company recognized no impairment of ROU assets as of March 31, 2021 and December 31, 2020.

The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the unaudited condensed consolidated balance sheets.

Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued Accounting Standards Update No. 2016-13,”Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023.The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its consolidated financial statements, particularly its recognition of allowances for accounts receivable. 

Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. 

3. BUSINESS COMBINATIONS

Disposition

On July 15, 2020, Porter E-Commerce entered into the Agreement with Mr. Kezhan Ma, whereby Porter E-Commerce transferred its 57% equity interests in Maihuolang E-Commerce to Mr. Kezhan Ma, for cash consideration of RMB 650,000 (approximately $95,735) which amount is received on July 27, 2020. The Company did not report the operation of Maihuolang E-commerce as discontinued operation as the sale did not represent a strategic shift that would have a major effect on the Company’s operations and financial results. An impairment loss of $52,603 and a disposal gain of $4,791 were recognized for the year ended December 31, 2020.

16

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

4. ACCOUNTS RECEIVABLE, NET

Accounts receivable consist of the following:

	March 31, 2021			December 31, 2020
Billed	$	46,303		$	46,303
Unbilled		3,491			3,132
Accounts receivable		49,794		$	49,435
Less: allowance for doubtful accounts		(30,933	)		(30,933	)
	$	18,861		$	18,502

The following table sets forth the movement of allowance for doubtful accounts:

	March 31, 2021		December 31, 2020
Beginning	$	30,933	$	3,065
Additions		-		1,051,816
Write off		-		(1,023,948	)
Exchange rate difference		-		-
Balance	$	30,933	$	30,933

5. PREPAYMENTS AND OTHER RECEIVABLES

Prepayments and other receivables consist of the following:

	March 31, 2021		December 31, 2020
Prepayments	$	14,517	$	10,448
Others		21,181		35,867
	$	35,698	$	46,315

6. EQUIPMENT, NET

Equipment, net consist of the following:

	March 31, 2021			December 31, 2020
Office and computer equipment	$	76,075		$	185,009
Less: Accumulated depreciation		(54,686	)		(149,130	)
		21,389			35,879
Impairment		-			(10,816	)
Exchange rate difference		-			(629	)
Net value	$	21,389		$	24,434

17

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

Depreciation expenses charged to the statements of operations for the three months ended March 31, 2021 and 2020 were $2,977 and $4,949, respectively.

7. INTANGIBLE ASSETS, NET

Intangible assets, net, consist of the following:

	March 31, 2021		December 31, 2020
Software copyright	$	-	$	-
Domain names and trademarks		-		42,473
Intangible asset		-		42,473
Less: Accumulated amortization		-		(18,126	)
				24,347
Impairment		-		(23,009	)
Exchange rate difference		-		(1,338	)
Net value	$	-	$	-

Amortization charged to the statements of operations for the three months period ended March 31, 2021 and 2020 were nil and $8,483, respectively.

8. ACCRUALS AND OTHER PAYABLES

Accruals and other payables consist of the following:

	March 31, 2021		December 31, 2020
Salary payables	$	30,036	$	185,396
Refund to a third party*		228,945		306,513
Accrued professional fees		19,778		33,735
Accrued rental expenses		31,555		155,539
Others		2,289		2,299
	$	312,603	$	683,482

*Refund to a third party is resulted from the fact that Henan Longji Real Estate Development Co., Ltd. (“Longji Real Estate”) filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to a loan of RMB 2 million (approximately $283,082) which occurred before Porter E-Commerce merged with the Company on April 13, 2020. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. This amount is co-related to the amount due from shareholders in Note 9.

18

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

9. BALANCES WITH RELATED PARTIES

	Note	March 31, 2021		December 31, 2020
Due from shareholders
Mr. Zongjian Chen and Ms. Xiaomei Xiong (wife of Mr. Zongjian Chen)	(a)	$	305,260	$	306,513
Mr. Zongjian Chen (brother of Mr. Zonghua Chen)			28,692		28,907
		$	333,952	$	335,420
Due to shareholders
Mr. Zonghua Chen (the Company’s Chairman, Chief Executive Officer, Chief Financial Officer and President)		$	1,935,130	$	2,046,988
Ms. Xiaomei Xiong (wife of Mr. Zongjian Chen)			905,247		-
		$	2,840,377	$	2,046,988

(a) On April 13, 2020, Longji Real Estate filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to certain loan of RMB 2 million (approximately $283,082) which occurred before Porter E-Commerce merged with the Company. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. Porter E-Commerce, Zongjian Chen and Xue’an Yan were also jointly liable for the litigation costs of RMB11,400 (approximately $1,614). This is co-related to the amount of refund to a third party in Note 8.

All the above balances are due on demand, interest-free and unsecured. The Company used the funds for its operations. For the three months ended March 31, 2021, the Company had transactions amounted $1,530,917 from shareholders and $720,278 to shareholders, comparing to $1,002,142 from shareholders and $818,933 to shareholders for the same period in 2020.

10. INCOME TAXES

The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled.

ULNV is incorporated in the State of Nevada and is subject to the U.S. federal tax and has incurred net operating loss for income tax purposes through March 31, 2021. As of March 31, 2021, future net operating losses of approximately $54,437 from ULNV are available to offset future taxable income. Accumulated deficit as of March 31, 2021 and December 31, 2020 was approximately $4.2 million and $4.5 million, respectively.

The 2017 Tax Act created a new requirement that, for the periods beginning after January 1, 2018, certain income (referred to as global intangible low taxed income or “GILTI”) earned by foreign subsidiaries in excess of a deemed return on tangible assets of foreign corporations must be included in U.S. taxable income. The GILTI income is eligible for a deduction, which lowers the effective tax rate to 10.5% for calendar years 2018 through 2025 and 13.125% after 2025. Under U.S. GAAP, companies are allowed to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which a company is subject to the rules – the period cost method, or (ii) account for GILTI in a company’s measurement of deferred taxes – the deferred method. The Company elected to account for GILTI in the period the tax is incurred. The Company did not generate any GILTI during the three-month period ended March 31, 2021.

PGL is registered as an international business company and is exempted from corporation tax in Seychelles.

PPBGL is subject to Hong Kong profits tax rate of 16.5%. For the three-month period ended March 31, 2021 and 2020, it did not have any assessable profits arising in or derived from Hong Kong and accordingly no provision for Hong Kong profits tax was made.

19

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

PRC Tax

The Company’s subsidiary and consolidated VIEs in China are subject to corporate income tax (“CIT”) at 25% for the three-month period ended March 31, 2021 and 2020. As of March 31, 2021, the Company had approximately $2.9 million of net operating loss carried forward from the foreign subsidiaries which will expire in various years through 2026.

A reconciliation of the income tax expense determined at the statutory income tax rate to the Company’s income taxes is as follows:

	Three Months Ended March 31,
	2021			2020
Income (loss) before income taxes	$	242,422		$	(554,764	)
United States statutory income tax rate		21	%		21	%
Income tax benefit computed at statutory corporate income tax rate		50,909			(116,500	)
Reconciling items:
Effect of different tax jurisdictions		(14,680	)		(31,380	)
Non-deductible expenses		591			52,697
Change in valuation allowance		(36,820	)		95,183
Income tax expense	$	-		$	-

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of March 31, 2021 and December 31, 2020 are presented below

	March 31, 2021			December 31, 2020
Deferred tax assets:
Net operating loss carryforwards:
- United States of America	$	11,432		$	11,432
- Hong Kong		45,655			44,147
- PRC		727,978			766,306
		785,065			821,885
Less: Valuation allowance		(785,065	)		(821,885	)
Disposal:
- PRC		-			(187,240	)
Less: Valuation allowance		-			187,240
	$	-		$	-

Management believes that it is more likely than not that the Company will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As a result, a valuation allowance was provided against the full amount of the potential tax benefits.

11. CHINA CONTRIBUTION PLAN

The Company’s subsidiaries and consolidated VIEs in China participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s subsidiaries and consolidated VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company’s China-based subsidiaries and consolidated VIEs have no further commitments beyond their monthly contributions. For the three months ended Mach 31, 2021 and 2020, the Company’s China based subsidiaries and consolidated VIEs contributed a total of $7,501 and $7,188, respectively, to these funds.

20

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

12. OPERATING LEASE

The Company has operating leases for its office facilities. The Company's leases have remaining terms of approximately four years. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes.

The Company subleases certain office space to a third party that has a remaining term of less than 12 months.

The following table provides a summary of leases by balance sheet location as of March 31, 2021 and December 31, 2020:

Assets/liabilities	March 31, 2021		December 31, 2020
Assets
Operating lease right-of-use assets	$	480,348	$	539,945
Liabilities
Operating lease liability - current	$	277,667	$	216,180
Operating lease liability - non-current		274,728		347,656
Total lease liabilities	$	552,395	$	563,836

The operating lease expenses for the three months ended March 31, 2021 and 2020 were as follows:

	Three months ended March 31,
Lease Cost	2021		2020
Operating lease cost	$	69,300	$	93,104

Maturities of operating lease liabilities at March 31, 2021 were as follows:

Maturity of Lease Liabilities	Operating Leases
12 months ending March 31,
2022		311,824
2023		285,838
Total lease payments		597,662
Less: interest		(45,267	)
Present value of lease payments	$	552,395

Lease liabilities include lease and non-lease component such as management fee. 

Future minimum lease payments, which do not include the non-lease components, as of March 31, 2021 were as follows:

12 months ending March 31,
2022	$	174,825
2023		213,675
Total	$	388,500

21

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

Lease Term and Discount Rate	March 31, 2021
Weighted-average remaining lease term (years)
Operating leases--- Shenzhen Development Center, 36/F, LuoHu, Shenzhen		1.92
Weighted-average discount rate (%)
Operating leases		8	%

13. CONCENTRATIONS AND CREDIT RISK

(a) Concentrations

In the three months ended March 31, 2021, no customers accounted for more than 10% of the Company’s revenues, respectively.

In the three months ended March 31, 2020, two customers accounted for 72% and 12% of the Company’s revenues.

No other customer accounts for more than 10% of the Company’s revenue in the three months ended March 31, 2021 and 2020.

As of March 31, 2021, one customer accounted for 81% of the Company’s accounts receivable. As of December 31, 2020, one customer accounted for 83% of the Company’s accounts receivable.

(b) Credit risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of March 31, 2021, and December 31, 2020, substantially all of the Company’s cash were held by major financial institutions located in the PRC, which management believes are of high credit quality.

For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations.

14. SEGMENT REPORTING

During the period ended March 31, 2021, the Company reports two reportable segments in consulting services, as well as training services and others.

Revenues and associated costs are directly attributable to the related segments. Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, are managed centrally at a consolidated level.

The Company’s Chief Operating Decision Maker does not evaluate operating segments using asset information.

Information about segments during the periods presented were as follows. For comparative purposes, amounts in prior period has been recast:

	Three months ended March 31,
	2021			2020
Revenue
Consulting services	$	-		$	305,660
Training services and others		14,487			121,606
Total revenue		14,487			427,266
Loss from operations
Consulting services	$	(140,590	)	$	(436,187	)
Training services and others		(72,115	)		(453	)
Corporate costs, unallocated		(81,289	)		(138,142	)
Total loss from operations	$	(293,994	)	$	(574,782	)

22

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars) 

15. SUBSEQUENT EVENT

The Company has analyzed its operations subsequent to March 31, 2021 to the date these consolidation financial statements were issued. There is not material subsequent events to disclose in these consolidated financial statements.

23

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following management’s discussion and analysis should be read in conjunction with our financial statements and the notes thereto and the other financial information appearing elsewhere in this report. Our financial statements are prepared in U.S. dollars and in accordance with U.S. GAAP.

Special Note Regarding Forward Looking Statements

In addition to historical information, this report contains forward-looking statements. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry segment growth; any projections of earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in our Annual Report on Form 10-K filed on April 15, 2021, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements.

Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the SEC. These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.

Use of Terms

Except as otherwise indicated by the context and for the purposes of this report only, references in this report to:

● “Company”, “we”, “us” and “our” are to the combined business of Porter Holding International, Inc., a Nevada corporation, and its consolidated subsidiaries and variable interest entities;

● “PGL” are to Porter Group Limited, a Republic of Seychelles company and our wholly-owned subsidiary;

● “PPBGL” are to Porter Perspective Business Group Limited, a Hong Kong company and wholly-owned subsidiary of PGL;

● “Qianhai Porter” are to Shenzhen Qianhai Porter Industrial Co. Ltd., a PRC company and wholly-owned subsidiary of PPBGL;

● “Portercity” are to Shenzhen Porter Enterprise Management Services Co. Ltd., a PRC company;

● “Porter E-Commerce” are to Shenzhen Porter Warehouse E-Commerce Co. Ltd., a PRC company and wholly-owned subsidiary of Portercity;

● “Porter Consulting” are to Shenzhen Porter Shops Lot Technology Co., Ltd., a PRC company and 85% owned subsidiary of Portercity;

● “Porter Commercial” are to Shenzhen Porter Commercial Perspective Network Co., Ltd., a PRC company and wholly-owned subsidiary of Portercity;

● “Weifang Portercity” are to Weifang Porter City Commercial Management Company Limited, a PRC company and a 60% owned subsidiary of Portercity;

● “VIEs” means our consolidated variable interest entities, including Portercity and its subsidiaries, Porter E-Commerce, Porter Consulting and Porter Commercial as depicted in our organizational chart below;

● “Hong Kong” refers to the Hong Kong Special Administrative Region of the People’s Republic of China;

24

● “China” and “PRC” refer to the People’s Republic of China;

● “Renminbi” and “RMB” refer to the legal currency of China;

● “U.S. dollars,” “dollars” and “$” refer to the legal currency of the United States;

● “SEC” are to the U.S. Securities and Exchange Commission;

● “Exchange Act” are to the Securities Exchange Act of 1934, as amended; and

● “Securities Act” are to the Securities Act of 1933, as amended.

Overview

We were incorporated in the State of Nevada on September 5, 2013. Our original business plan was to sell freshly squeezed juices from mobile stands in London, United Kingdom, but this business was not successful and we did not generate any revenue from this business. Since 2016, through our VIE entity, Porter Consulting, we have partnered with China Payment Technology Co., Ltd., a third-party online payment service provider (“China Payment”) to promote China Payment’s online payment platform to companies and businesses in Shenzhen and in return share a portion of the processing fees earned by China Payment as commission. Porter Consulting also partners with Shenzhen Xinghua Tongfu Technology Co., Ltd., a third-party online payment service provider (“Shenzhen Tongfu”), whereby Porter Consulting agreed to promote Shenzhen Tongfu’s online payment platform, including the Point of Sale (POS) system, to companies and businesses in China and in return obtain a certain amount of commission based on the volume of trading through such online payment platform.

On July 15, 2020, Porter E-Commerce entered into an Equity Transfer Agreement (the “Agreement”) with Mr. Kezhan Ma, whereby Porter E-Commerce transferred its 57% equity interests in Maihuolang E-Commerce to Mr. Kezhan Ma, for cash consideration of RMB 650,000 (approximately $95,735).  An impairment loss of $51,936 and a disposal gain of $4,730 were recognized.

Moreover, we have been developing our O2O (Online to Offline) business by serving as an O2O business platform operator that provides both online E-commerce and offline physical business facilities to our merchant customers where they can conduct business and interact with their existing and potential end-consumers face to face. Our goal is to provide one-stop services for our customers through our integrated online and offline platforms. As described fully below, we are developing and offering our O2O products and services including hosting our online marketplaces (www.pt37.com and www.17yugo.com) for our merchant clients to post and sell their products and services online and managing and operating physical business facilities, Porter City, that our online merchant clients can utilize to conduct their businesses offline. We currently focus on merchant clients who are engaged in manufacturing, real estate, trade and financing sectors. In the future, we intend to expand our merchant client base to industries of big data, new materials, new energy, green food and environment protection.

According to the development demands and goals of our customers, in 2018, we started to offer a series of services such as business planning, financial guidance, business matching and guidance for listing primarily in the United States. At present, in our customer pool, many small and medium-sized enterprises have gained certain public awareness. They are seeking the potential advantages of being a listed company and striving for obtaining the recognition of international capital to accelerate their corporate expansion. However, many enterprises may not be familiar with the listing requirements, laws and regulations of different capital markets, and the process of obtaining financing from overseas markets.

In order to help our customers who intend to access overseas capital markets, we have a team of experienced professionals who have professional knowledge of the listing rules and regulations of various capital markets. We capitalize on our expertise and resources in the capital markets to assist these customers to achieve their goals.

Starting from the first quarter of 2019, we via PPBGL provide various training services to our clients, primarily those related to e-commerce platform operation, expansion of channels and promotion strategies, via live and online sessions.

Since the first half of 2020, the COVID-19 pandemic has caused economic slowdowns, depressed demand for the Company’s services, and adversely impacted the Company’s operating results. The Company’s revenue decreased by $412,779, or 96.61% for the three months of 2021, compared to $427,266 for the same period of 2020. Therefore, the Company changed to require upfront cash payments prior to performing certain consulting services, in order to enhance collection of accounts receivable. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19. 

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Results of Operations

Comparison of Three Months Ended March 31, 2021 and 2020

The following table sets forth key components of our results of operations during the three months ended March 31, 2021 and 2020, both in dollars and as a percentage of our revenue.

	Three Months Ended March 31,
	2021						2020
	Amount			% of Revenue			Amount			% of Revenue
Revenue	$	14,487			100.00		$	427,266			100.00
Cost of revenue		(6,844	)		(47.24	)		(373,974	)		(87.53	)
Gross profit		7,643			52.76			53,292			12.47
Operating expenses
General and administrative expenses		(301,637	)		(2,082.12	)		(628,074	)		(147.00	)
Loss from operations		(293,994	)		(2,029.36	)		(574,782	)		(134.53	)
Other income		536,416			3,702.74			20,018			4.69
Net income (loss) before income taxes		242,422			1,673.38			(554,764	)		(129.84	)
Income tax expenses		-			-			-			-
Net income (loss)	$	242,422			1,673.38		$	(554,764	)		(129.84	)
Less: Net loss attributable to non-controlling interests		(3,404	)		(23.50	)		(2,697	)		(0.63	)
Net income (loss) attributable to Porter Holding International Inc. common stockholders	$	245,826			1,696.88		$	(552,067	)		(129.21	)

Revenue. Our revenue was $14,487 for the three months ended March 31, 2021, compared to $427,266 for the same period last year. One of our revenue sources is to provide various consulting services to our customers, especially those who have the intention to be publicly listed, primarily on the stock exchanges in the United States. Service income from the provision of these consulting services totaled nil and $305,660 for the three months ended March 31, 2021 and 2020, respectively. The significant decrease was mainly attributable to the impacts of COVID-19 and depressed market demand. Starting from 2019, the Company provides various training services to its clients, primarily related to e-commerce platform operation, expansion of channels, promotion strategy and capital market operation, via live and online sessions. The service income from providing training services totaled $1,947 and $77,778 for the three months ended March 31, 2021 and 2020. Through Porter Consulting, we also promoted the payment service of third-party payment service providers to merchants in Shenzhen and in return share a portion of the processing fees earned by the third-party payment service providers in the form of commission. Our commission totaled $8,609 and $12,450 for the three months ended March 31, 2021 and 2020, respectively. The approximately 50% decline in commission for the first quarter of 2021 was also the result of the COVID-19 pandemic and nationwide economic slowdowns. Revenues of $3,236 and $11,928 were generated from trading business for the three months ended March 31, 2021 and 2020, respectively.

Due to the impact of COVID-19, the Company, starting from the first quarter of 2020, requests to receive cash prior to performing investment and corporate management consulting services in order to ensure collection of payment.

Cost of revenue.  Our cost of revenue was $6,844 for the three months ended March 31, 2021, compared to $373,974 for the same period last year. Cost of revenue includes the costs incurred in performing consulting services, third-party payment service and other business. The cost of consulting service arises from shell acquisitions, and legal and accounting advisory service outsourced to third-party service providers. The decrease of cost of revenue is in line with the decrease of revenue.

Gross profit and gross margin. Our gross profit was $7,643 for the three months ended March 31, 2021, compared to $53,292 for the same period last year. Gross profit as a percentage of revenue (gross margin) was 52.76% for the three months ended March 31, 2021, compared to 12.47% for the same quarter last year. The decrease of gross profit was mainly due to the decrease of business demand and suspension of business operations as a result of COVID-19. 

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General and administrative expenses. As shown below, our general and administrative expenses consist primarily of bad debt provision, compensation and benefits to our general management, finance and administrative staff, professional fees and other expenses incurred in connection with general operations. Our general and administrative expenses decreased by $326,437 to $301,637 for the three months ended March 31, 2021, compared to $628,074 for the same period of 2020. Decrease was mainly due to that no allowance for doubtful accounts was reserved during the three months ended March 31, 2021. The Company had assessed that, for the three months ended March 31, 2020, collectability was not probable for the majority of receivables incurred from providing investment and corporate management consulting services and thus the Company provided 100% bad debt provision for such receivables. No further allowance for these receivables accrued for the three months ended March 31, 2021. Besides, there was a decrease in salary and staff benefit, legal and professional fees and lease and management fee of $98,147, $48,279 and $22,535, respectively, compared to corresponding period in prior year. The decrease was mostly due to the depressed economic environment and the cost reduction strategy of the Company as a result of the impact of COVID-19.

	Three months ended March 31,
	2021				2020				Fluctuation
	Amount		%		Amount		%		Amount			%
Salary and staff benefit	$	94,059		31.18	$	192,206		30.60	$	(98,147	)		(51.06	)
Lease and management fee		72,068		23.89		94,603		15.06		(22,535	)		(23.82	)
Legal and professional fee		96,572		32.02		144,851		23.06		(48,279	)		(33.33	)
Depreciation and amortization		2,977		0.99		13,562		2.16		(10,585	)		(78.05	)
Bad debt provision		-		-		164,082		26.12		(164,082	)		(100.00	)
Others		35,961		11.92		18,770		3.00		17,191			91.59
Total	$	301,637		100.00	$	628,074		100.00	$	(326,437	)		(51.97	)

Other income. Our other income was $536,416 and $20,018 for the three months ended March 31, 2021 and 2020. The increase was due to the compensation received with the termination of the Weifang project. During January 2021, Weifang Portercity agreed with the local government to terminate a project, which was signed on August 25, 2018 for Weifang Portercity to facilitate investment and promote business opportunities for the Weifang region. As the local government changed its development strategy, it determined to terminate the Weifang project. Consequently, Weifang Portercity received a compensation of approximately $0.5 million from the local government to compensate its upfront establishment expenses including expenditure relating to office renovation, office equipment and supplies.

Income tax expense. Our Income tax expense was nil for the three months ended March 31, 2021 and 2020.

Net income (loss). As a result of the cumulative effect of the factors described above, there was a net income of $242,422 and net loss of $554,764 for the three months ended March 31, 2021 and 2020, respectively.

Need for Additional Capital

Our business is subject to risks such as limited capital resources, a narrow client base, limited sources of revenue, and possible cost overruns due to the price and cost increases in supplies and services.

Without additional funding, management believes that we will not have sufficient funds to meet our obligations beyond one year after the date our unaudited condensed consolidated financial statements are issued. These conditions give rise to substantial doubt as to our ability to continue as a going concern. 

We have been, and intend to continue, working toward identifying and obtaining new sources of financing. To date we have been dependent on related parties for our source of funding. No assurances can be given that we will be successful in obtaining additional financing in the future. Any future financing that we may obtain may cause significant dilution to existing stockholders. Any debt financing or other financing of securities senior to common stock that we are able to obtain will likely include financial and other covenants that will restrict our flexibility. Any failure to comply with these covenants would have a negative impact on our business, prospects, financial condition, results of operations and cash flows.

If adequate funds are not available, we may be required to delay, scale back or eliminate portions of our operations or obtain funds through arrangements with strategic partners or others that may require us to relinquish rights to certain of our assets. Accordingly, the inability to obtain such financing could result in a significant loss of ownership and/or control of our assets and could also adversely affect our ability to fund our continued operations and our expansion efforts.

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Currently we spend approximately $200,000 per month for basic operations. During the next 12 months, we expect to incur a similar amount of expenses each month. However, as we work to expand our operations, we expect to incur significant research, marketing and development costs and expenses on our online service platforms that meet the constantly evolving industry standards and consumer demands. We may also need to hire additional employees in order to provide new services and accommodate new clients.

Liquidity and Capital Resources

Working Capital

	March 31, 2021			December 31, 2020
Current Assets	$	1,050,508		$	425,149
Current Liabilities		3,922,016			3,539,288
Working Capital Deficiency	$	(2,871,508	)	$	(3,114,139	)

As of March 31, 2021, we had cash of $661,997. To date, we have financed our operations primarily through borrowings from our stockholders, related and unrelated parties.

Going Concern Uncertainties

The accompanying unaudited condensed consolidated financial statements have been prepared assuming we will continue as a going concern.

We have considered whether there is substantial doubt about our ability to continue as a going concern given (1) our net income from operations, including approximately $242,422 net income attributable to our stockholders for the three months ended March 31, 2021, (2) our accumulated deficit of approximately $4,243,590 as of March 31, 2021 and (3) the fact that we had negative operating cash flows of approximately $162,925 for the three months ended March 31, 2021.

As of March 31, 2021, our cash balance was $661,997 and our current liabilities exceed current assets by $2,871,508. Our cash balance as of March 31, 2021 may not be sufficient to support our operations for the next 12 months after the date that the financial statements issued. The negative operating results of cash flow and working capital for the quarter ended March 31, 2021 raise substantial doubt about our ability to continue as a going concern. Our continued operations are highly dependent upon our ability to increase revenues and if needed complete equity and/or debt financing.

In evaluating if there is substantial doubt about our ability to continue as a going concern, we are trying to alleviate the going concern risk through (1) increasing cash generated from operations by controlling operating expenses and increasing more live steaming e-commerce events to bring up e-commerce revenue, (2) financing from domestic banks and other financial institutions, and (3) equity or debt financing. We have certain plans to mitigate these adverse conditions and to increase the liquidity of the Company.

However, if we are unable to obtain the necessary additional capital on a timely basis and on acceptable terms, we will be unable to implement our current plans for expansion, repay debt obligations or respond to competitive market pressures, which will have negative impacts upon our business, prospects, financial condition and results of operations. On an on-going basis, the Company also received and will continue to receive financial support commitments from the Company’s related parties.

	Three Months Ended March 31,
	2021			2020
Net cash used in operating activities	$	(162,925	)	$	(283,382	)
Net cash used in investing activities		-			(21,078	)
Net cash provided by financing activities		810,639			183,209
Effect of exchange rate changes on cash		(10,629	)		39,247
Net decrease in cash		637,085			(82,004	)
Cash at the beginning of period		24,912			224,733
Cash at the end of period	$	661,997		$	142,729

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Operating Activities

Net cash used in operating activities was $162,925 for the three months ended March 31, 2021, as compared to $283,382 net cash used in operating activities for the three months ended March 31, 2020. The net cash used in operating activities for the three months ended March 31, 2021 was mainly due to our net income of $242,422, partially offset by the decrease in accruals and other payables of $368,193 and deferred revenue of $64,461. The net cash used in operating activities for the three months ended March 31, 2020 was mainly due to our net loss of $554,764, an increase in prepayments and other receivables of $29,508 and a decrease in operating lease liability of $77,359, partially offset by the increase in accruals and other payables of $109,735 and deferred revenue of $42,410.

Investing Activities

Net cash used in investing activities was nil for the three months ended March 31, 2021, as compared to $21,078 net cash used in investing activities for the three months ended March 31, 2020. The net cash used in investing activities for the three months ended March 31, 2020 were mainly attributable to the purchase of equipment.

Financing Activities

Net cash provided by financing for the three months ended March 31, 2021 was $810,639, as compared to $183,209 for the three months ended March 31, 2020. For the three months ended March 31, 2021, we obtained advances of $1,530,917 from shareholders and repaid $720,278 to shareholders. For the three months ended March 31, 2020, we obtained advances of $1,002,142 from shareholders and repaid $818,933 to shareholders.

Contractual Obligations and Commercial Commitments

We had the following contractual obligations and commercial commitments as of March 31, 2021:

Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Amounts due to shareholders	$	2,840,377	$	2,840,377	$	-	$	-	$	-
Leases		388,500		174,825		213,675		-		-
TOTAL	$	3,228,877	$	3,015,202	$	213,675	$	-	$	-

We believe that our current cash and financing from our existing stockholders are adequate to support operations for at least the next 12 months. We may, however, in the future, require additional cash resources due to changed business conditions, implementation of our strategy to expand our business or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

Capital Expenditures

We incurred capital expenditures of nil and $21,078 for the three months ended March 31, 2021 and 2020, respectively.

Off-Balance Sheet Transactions

We do not have any 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 or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

Critical Accounting Policies

Our unaudited condensed consolidated financial information has been prepared in accordance with U.S. GAAP, which requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application. There were no other material changes to the critical accounting policies previously disclosed in our audited consolidated financial statements for the year ended December 31, 2020 included in the Annual Report on Form 10-K filed on April 15, 2021.

29

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, our management has carried out an evaluation, with the participation and under the supervision of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2021. Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating and implementing possible controls and procedures.

Management conducted its evaluation of disclosure controls and procedures under the supervision of our chief executive officer and chief financial officer.  Based upon, and as of the date of this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as of March 31, 2021 due to the following material weaknesses that our management identified in our internal control over financial reporting as of March 31, 2021:

(1)     We did not hold shareholders meetings during the last fiscal year;

(2)     We do not have an audit committee;

(3)     We do not have sufficient and skilled accounting personnel with an appropriate level of technical accounting knowledge and experience in the application of accounting principles generally accepted in the United States commensurate with our financial reporting requirements;

(4)     We do not have appropriate policies and procedures in place to evaluate the proper accounting and disclosures of key documents and agreements of revenue process;

(5)     We have not maintained sufficient internal controls over cash related controls, including failure to segregate cash handling and accounting functions and did not require dual signature on the Company’s bank accounts. Alternatively, the effects of poor cash controls were mitigated by the fact that we had limited transactions in our bank accounts; and

(6)     We retain copies of all financial data and material agreements; however there is no formal procedure or evidence of normal backup of our data or off-site storage of data in the event of theft, misplacement, or loss due to unmitigated factors. We did not implement appropriate information technology controls.

A material weakness is a deficiency or a combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual financial statements will not be prevented or detected in a timely basis.

We plan to take steps to remediate these material weaknesses as soon as practicable by implementing a plan to improve our internal control over financial reporting including, but not limited to, hiring additional staff and/or outside consultants experienced in US GAAP financial reporting as well as in SEC reporting requirements.  Our management team will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements.

Our management does not believe that these material weaknesses had a material effect on our financial condition or results of operations or caused our unaudited condensed consolidation financial statements as of and for the period ended March 31, 2021 to contain a material misstatement.

Changes in Internal Control over Financial Reporting

Except for the matters described above, there were no changes in our internal controls over financial reporting during the quarter ended March 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

30

PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. We are currently not aware of any legal proceedings or claims that would require disclosure under Item 103 of Regulation S-K. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

ITEM 1A. RISK FACTORS.

Not applicable.

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.

The following exhibits are filed as part of this report or incorporated by reference:

Exhibit No.	Description
31.1	Certifications of Principal Executive Officer and Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

31

SIGNATURES

Pursuant to the requirements 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: May 14, 2021

PORTER HOLDING INTERNATIONAL, INC.
By:	/s/ Zonghua Chen
	Zonghua Chen
	Chief Executive Officer and Chief Financial Officer

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EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Zonghua Chen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Porter Holding International, 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. I am 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. I have disclosed, based on my 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.

Date:  May 14, 2021

/s/ Zonghua Chen

Zonghua Chen

Chief Executive Officer and Chief Financial Officer
(Principal Executive Officer, Principal Financial Officer and Accounting 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

The undersigned, Zonghua Chen, Chief Executive Officer and Chief Financial Officer of PORTER HOLDING INTERNATIONAL, INC. (the “Company”), DOES HEREBY CERTIFY that:

1.     The Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2.     Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, the undersigned has executed this statement this 14^th day of May, 2021.

/s/ Zonghua Chen                                                        

Zonghua Chen

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer, Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Porter Holding International, Inc. and will be retained by Porter Holding International, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Document Information Line Items
Entity Registrant Name	Porter Holding International, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		508,110,000
Amendment Flag	false
Entity Central Index Key	0001605810
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash	$ 661,997	$ 24,912
Accounts receivable, net of $30,933 and $30,933 allowance for doubtful accounts as of March 31, 2021 and December 31, 2020, respectively	18,861	18,502
Prepayments and other receivables	35,698	46,315
Due from shareholders	333,952	335,420
Total current assets	1,050,508	425,149
NON-CURRENT ASSETS
Long-term rental deposits	38,434	38,592
Long-term prepayments	4,660	5,758
Equipment, net	21,389	24,434
Operating lease right-of-use assets	480,348	539,945
Total non-current assets	544,831	608,729
TOTAL ASSETS	1,595,339	1,033,878
CURRENT LIABILITIES
Accounts payable	120,785	145,644
Accruals and other payables	312,603	683,482
Deferred revenue	290,173	355,398
Taxes payable	80,411	91,596
Amounts due to shareholders	2,840,377	2,046,988
Operating lease liabilities – current	277,667	216,180
Total current liabilities	3,922,016	3,539,288
NON-CURRENT LIABILITIES
Operating lease liabilities - non-current	274,728	347,656
TOTAL LIABILITIES	4,196,744	3,886,944
DEFICIT
Common stock, par value $0.001 per share; 750,000,000 shares authorized, 508,110,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020	508,110	508,110
Additional paid-in capital	1,128,241	1,128,241
Accumulated deficit	(4,243,590)	(4,489,416)
Accumulated other comprehensive loss	(71,389)	(80,923)
Total Porter Holding International, Inc. stockholders’ deficit	(2,678,628)	(2,933,988)
Non-controlling interests	77,223	80,922
Total deficit	(2,601,405)	(2,853,066)
TOTAL LIABILITIES AND DEFICIT	$ 1,595,339	$ 1,033,878

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in Dollars)	$ 30,933	$ 30,933
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	508,110,000	508,110,000
Common stock, shares outstanding	508,110,000	508,110,000

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
REVENUE	$ 14,487	$ 427,266
COST OF REVENUE	(6,844)	(373,974)
GROSS PROFIT	7,643	53,292
OPERATING EXPENSES	(301,637)	(628,074)
LOSS FROM OPERATIONS	(293,994)	(574,782)
OTHER INCOME, NET	536,416	20,018
NET INCOME (LOSS) BEFORE TAXES	242,422	(554,764)
Income tax expense	0	0
NET INCOME (LOSS)	242,422	(554,764)
Less: Net loss attributable to non-controlling interests	(3,404)	(2,697)
Net income (loss) attributable to Porter Holding International, Inc. common stockholders	245,826	(552,067)
Other comprehensive income (loss)
Foreign currency translation income	9,239	20,003
Total Comprehensive income (loss)	251,661	(534,761)
Less: comprehensive loss attributable to non-controlling interests	(3,699)	(5,724)
Comprehensive income (loss) attributable to Porter Holding International, Inc. common stockholders	$ 255,360	$ (529,037)
Basic and diluted income (loss) per share (in Dollars per share)	$ 0	$ 0
Weighted average number of common shares outstanding - basic and diluted (in Shares)	508,110,000	508,110,000

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2019	$ 508,110	$ 1,077,986	$ (2,200,932)	$ 92,800	$ 182,406	$ (339,630)
Balance (in Shares) at Dec. 31, 2019	508,110,000
Net income (loss)			(552,067)		(2,697)	(554,764)
Foreign currency translation adjustment				23,030	(3,027)	20,003
Balance at Mar. 31, 2020	$ 508,110	1,077,986	(2,752,999)	115,830	176,682	(874,391)
Balance (in Shares) at Mar. 31, 2020	508,110,000
Balance at Dec. 31, 2020	$ 508,110	1,128,241	(4,489,416)	(80,923)	80,922	(2,853,066)
Balance (in Shares) at Dec. 31, 2020	508,110,000
Net income (loss)			245,826		(3,404)	242,422
Foreign currency translation adjustment				9,534	(295)	9,239
Balance at Mar. 31, 2021	$ 508,110	$ 1,128,241	$ (4,243,590)	$ (71,389)	$ 77,223	$ (2,601,405)
Balance (in Shares) at Mar. 31, 2021	508,110,000

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net income (loss)	$ 242,422	$ (554,764)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization	2,977	13,432
Amortization of operating lease right-of-use assets	58,010	75,102
Allowance for doubtful accounts	0	164,082
Changes in assets and liabilities
Accounts receivable	(376)	(941)
Prepayments and other receivables	11,384	(29,508)
Operating lease liabilities	(9,234)	(77,359)
Accounts payable	(24,526)	(5,713)
Accruals and other payables	(368,193)	109,735
Deferred revenue	(64,461)	42,410
Tax payable	(10,928)	(19,858)
Net cash used in operating activities	(162,925)	(283,382)
Cash flows from investing activities
Purchase of equipment	0	(21,078)
Net cash used in investing activities	0	(21,078)
Cash flows from financing activities
Advances from shareholders	1,530,917	1,002,142
Repayments to shareholders	(720,278)	(818,933)
Net cash provided by financing activities	810,639	183,209
Effect of exchange rates on cash	(10,629)	39,247
Net increase (decrease) in cash	637,085	(82,004)
Cash at beginning of period	24,912	224,733
Cash at end of period	661,997	142,729
Supplemental of cash flow information
Cash paid for interest expenses	0	0
Cash paid for income tax	$ 0	$ 0

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ORGANIZATION AND BUSINESS

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. ORGANIZATION AND BUSINESS

Porter Holding International, Inc. (formerly known as Uni Line Corp., “ULNV” or the “Company”) was incorporated in the State of Nevada on September 5, 2013.

As of March 31, 2021, the Company has subsidiaries incorporated in countries and jurisdictions including the People’s Republic of China (“PRC”), Hong Kong, and Seychelles As of March 31, 2021, the Company also effectively controls a number of variable interest entities (“VIEs”) through the Primary Beneficiaries, as defined below. The VIEs include:

(a)     Shenzhen Porter Warehouse E-Commerce Co. Ltd. (“Porter E-Commerce”);

(b)     Shenzhen Porter Shops Lot Technology Co., Ltd. (“Porter Consulting”); and

(c)     Shenzhen Porter Commercial Perspective Network Co. Ltd. (“Porter Commercial”).

As a result of the above contractual arrangements, or the Contractual Arrangements, PGL has substantial control over the VIE Entities’ daily operations and financial affairs, election of their senior executives and all matters requiring shareholder approval. Furthermore, as the primary beneficiary of the VIE Entities, the Company is entitled to consolidate the financial results of the VIE Entities in its own consolidated financial statements under Financial Accounting Standards Board Accounting Standard Codification (“ASC”) Topic 810 and related subtopics related to the consolidation of variable interest entities, or ASC Topic 810.

In August 2019, Porter E-Commerce acquired 60% of the equity interest in Shenzhen Qianhai Maihuolang E-commerce Co., Ltd. (“Maihuolang E-commerce”), which is engaged in the business of online E-commerce. In October 2019, the shareholders of Maihuolang E-commerce resolved that the registered capital from RMB 5,000,000 ($718,205) to RMB 5,263,157 ($756,005), and such increase in registered capital would be contributed by the non-controlling interest shareholder. Consequently, the equity interest in Maihuolang E-commerce owned by the Company was changed to 57%. On July 15, 2020, Porter E-Commerce entered into an Equity Transfer Agreement (the “Agreement”) with Mr. Kezhan Ma, whereby Porter E-Commerce transferred its 57% equity interests in Maihuolang E-Commerce to Mr. Kezhan Ma, for cash consideration of RMB 650,000 (approximately $95,735) which amount is received on July 27, 2020. The Company did not report the operation of Maihuolang E-commerce as discontinued operation as the sale did not represent a strategic shift that would have a major effect on the Company’s operations and financial results. An impairment loss of $52,603 and a disposal gain of $4,791 were recognized.

In July 2020, the shareholders of Porter Consulting resolved that the registered capital from RMB 1,000,000 ($147,284) to RMB 1,176,470 ($173,275), and such increase in registered capital would be contributed by the non-controlling interest shareholder. Consequently, the equity interest in Porter Consulting owned by the Company was changed to 85%. Besides, Porter Consulting change from Shenzhen Yihuilian Information Consulting Co. Ltd. to Shenzhen Porter Shops Lot Technology Co., Ltd.

The Company and its subsidiaries and VIE entities (collectively referred to as the “Company”) focus its business as an innovative O2O (Online to Offline) business platform operator covering both online E-commerce and offline commercial chain entity of three dimensional synchronous operation together with integrated comprehensive services for merchant clients, service income from organizing and delivering an event and forum, and third-party payment service. Starting from the second quarter of 2018, the Company provides investment and corporate management consulting services to its clients.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries and its variable interest entities. All significant inter-company transactions and balances have been eliminated in consolidation. 

The unaudited interim condensed consolidated financial information as of March 31, 2021, and for the three months periods ended March 31, 2021 and 2020 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have not been included. The unaudited interim condensed consolidated financial information should be read in conjunction with the Consolidated Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, previously filed with the SEC on April 15, 2021.

In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these unaudited condensed consolidated financial statements, which are of a normal and recurring nature, have been included. The results reported in the unaudited condensed consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year.

Liquidity and Going Concern

The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements.

The Company has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) its recurring loss from operations, despite approximately $242,422 net income attributable to the Company’s stockholders for the three months ended March 31, 2021 due to a one time compensation from a project terminated by counter party, (2) its accumulated deficit of approximately $4,243,590 as of March 31, 2021 and (3) the fact that the Company had negative operating cash flows of approximately $162,925 for the three months ended March 31, 2021.

In evaluating if there is substantial doubt about its ability to continue as a going concern, the Company is trying to alleviate the going concern risk through (1) increasing cash generated from operations by controlling operating expenses and expanding more revenue streams, (2) loans from existing directors and shareholders, and (3) equity or debt financing. The Company has certain plans to mitigate these adverse conditions and to increase the liquidity of the Company.

As of March 31, 2021, our cash balance was $661,997 and our current liabilities exceed current assets by $2,871,508. Our cash balance as of March 31, 2021 may not be sufficient to support our operations for the next 12 months after the date that the financial statements issued. The negative operating results of cash flow and working capital for the quarter ended March 31, 2021 raise substantial doubt about our ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern.

During January to March 2021, the Company received loans from shareholders with approximately $1.4 million. On an on-going basis, the Company also received and will continue to receive financial support commitments from the Company’s related parties. However, if the Company is unable to obtain the necessary additional capital on a timely basis and on acceptable terms, the Company will be unable to implement its current plans for expansion, repay debt obligations or respond to competitive market pressures, which will have negative influence upon its business, prospects, financial condition and results of operations. 

The Company believes if it is unable to obtain its resources to fund operations, it may be required to delay, scale back or eliminate some or all of its planned operations, which may have a material adverse effect on its business, results of operations and ability to operate as a going concern.

Use of Estimates

The preparation of these unaudited condensed consolidated financial statements requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its unaudited condensed consolidated financial statements.

VIE Consolidation

The Company’s VIEs with the exception of Weifang Portercity and Porter Consulting, are wholly owned by Mr. Zonghua Chen and Ms. Xiaomei Xiong as nominee shareholders. For the consolidated VIEs, management made evaluations of the relationships between the Company and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Company controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Company is the primary beneficiary of its consolidated VIEs.

PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses in which the Company is engaged or could be deemed to be engaged. Consequently, the Company conducts certain of its operations and businesses in the PRC through its VIEs. The Company consolidates in its consolidated financial statements all of the VIEs of which the Company is the primary beneficiary.

The following financial information of the Company’s consolidated VIEs (including subsidiary of VIEs) is included in the accompanying unaudited condensed consolidated financial statements:

	March 31, 2021		December 31, 2020
ASSETS
CURRENT ASSETS
Cash	$	648,246	$	13,013
Accounts receivable, net		3,491		3,132
Prepayments and other receivables		35,650		46,026
Due from shareholders		434,192		435,975
Amount due from the Company and its non-VIE subsidiaries (1)		525,491		441,759
Total current assets		1,647,070		939,905
NON-CURRENT ASSETS
Long term rental deposit		38,434		38,592
Long term prepayment		4,660		5,758
Equipment, net		20,477		23,410
Operating lease right-of-use assets		480,348		539,945
Total non-current assets		543,919		607,705
TOTAL ASSETS	$	2,190,989	$	1,547,610
CURRENT LIABILITIES
Accounts payable	$	120,785	$	145,644
Accruals and other payables		291,985		645,073
Deferred revenue		290,173		355,398
Tax payable		80,411		91,596
Amounts due to shareholders of the Company		3,073,314		2,294,151
Operating lease liability - current		277,667		216,180
Total current liabilities		4,134,335		3,748,042
NON-CURRENT LIABILITIES
Operating lease liability - non-current		274,728		347,656
TOTAL LIABILITIES	$	4,409,063	$	4,095,698

(1) Amount due from the Company and its non-VIE subsidiaries consists of intercompany from other non-VIE subsidiaries within the Company. 

	Three months ended March 31,
	2021		2020
Net revenue	$	14,487	$	377,313
Net income (loss)	$	326,454	$	(464,933	)

	Three months ended March 31,
	2021			2020
Net cash used in operating activities	$	(68,456	)	$	(171,314	)
Net cash used in investing activities		-			(21,078	)
Net cash provided by financing activities		710,616			109,283

Revenue Recognition

The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five step model prescribed under Accounting Standards Update (“ASU”) No. 2014-09: (i) identify contract(s) with a customer: Due to impact of COVID-19, the Company, starting from first quarter of 2020, determines to receive cash prior to performing investment and corporate management consulting services in order to ensure probable collection of consideration and hence existence of a contract; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation.

Revenues are recognized when control of the promised goods or services is transferred to the customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expect to be entitled to in exchange for those goods or services.

The Company via Porter Consulting earns commissions of $8,609 and $12,450 for the three months ended March 31, 2021 and 2020 respectively, primarily from a third-party payment service provider when China UnionPay card transactions are completed and settled. Revenue related to commissions is recognized in the statement of operation at the time when the underlying transaction is completed.

The third-party payment provider is a China UnionPay card acquiring institution and earns processing fees from China UnionPay card transactions. The Company’s performance obligation is to promote, via Porter Consulting, the payment service of the third-party payment service provider to merchants in Shenzhen, for which the Company shares a portion of the processing fees earned by the third-party payment service provider from China UnionPay, as commission.

Starting from the second quarter of 2018, the Company via Portercity provides various consulting services to its clients, especially to those who have the intention to be publicly listed in the stock exchanges in the United States and other countries. The Company categorizes its consulting services into three phases:

Phase I consulting services primarily include due diligence review, market research and feasibility study, business plan drafting, accounting record review, and business analysis and recommendations etc. Management estimates that Phase I normally takes around three months to complete based on its past experiences.

Phase II consulting services primarily include reorganization, pre-listing education and tutoring, talent search, legal and audit firm recommendation and coordination, VIE contracts and other public-listing related documents review, merger and acquisition planning, investor referral and pre-listing equity financing source identification and recommendation, independent directors and audit committee candidates recommendation; shell company identification and recommendation for customers expecting to become publicly listed through reverse merger transaction; etc. Management estimates that Phase II normally takes about five months to complete based its past experiences.

Phase III consulting services primarily include assistance in preparation of customers’ registration statement under IPO transactions or Form 8-K under reverse merger transactions; assistance in answering comments and questions received from regulatory agencies etc. Management believes it is very difficult to estimate the timing of this phase of service as the completion of Phase III services is not within the Company’s control.

Under ASC Topic 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable. Each phase of consulting services is standalone and fees associated with each phase are usually clearly identified in service agreements. Revenue from providing Phase I and Phase II consulting services to customers is recognized based on the output methods, including surveys of performance completed to date or milestones reached of each phase only when the Company has an enforceable right to payment for performance completed to date. Otherwise, such revenue is recognized at a point in time when services are delivered and accepted by customers. Revenue from providing Phase III consulting services to customers is recognized upon completion of reverse merger transaction or IPO transaction, which is evidenced by filing of 8-K for reverse merger transaction or receipt of effective notice from regulatory agencies for IPO transaction. Revenue that has been billed and not yet recognized is reflected as deferred revenue on the consolidated balance sheets.

Depending on the complexity of the underlying service arrangement and related terms and conditions, significant judgments, assumptions and estimates may be required to determine when substantial delivery of contract elements has occurred, whether any significant ongoing obligations exist subsequent to contract execution, whether amounts due are collectible and the appropriate period or periods in which, or during which, the completion of the earnings process occurs. Depending on the magnitude of specific revenue arrangements, adjustment may be made to the judgments, assumptions and estimates regarding contracts executed in any specific period. Service income from consulting services, totaled nil and $305,660 for the three months period ended March 31, 2021 and 2020, is recognized when the service is performed.

In accordance with ASC 606, the Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned by PPBGL as commissions. When the Company is primarily obligated in a transaction, is subject to inventory risk, has latitude in establishing prices and selecting suppliers, or has several but not all of these indicators, revenues should be recorded on a gross basis. When the Company is not the primary obligor, does not bear the inventory risk and does not have the ability to establish the price, revenues are recorded on a net basis. The Company determined that it is not the primary obligor in its trading business. For the three months period ended March 31, 2021 and 2020, the Company recognized a net revenue of $3,236 and $11,928, when control of the products has transferred, being at the point the products are delivered to the customer and the customer has accepted the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.

Starting from the first quarter of 2019, the Company, via PPBGL, Maihuolang E-commerce and Porter Commercial, provides various training services to its clients, primarily related to e-commerce platform operation, expansion of channels and promotion strategy, and capital market operation, via live and online sessions. Under ASC Topic 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable. The fees associated with the course of training sessions are clearly identified in service agreements. Training service revenue is recognized at the time when the training sessions stipulated in the contract are completed. The Company recognized $1,947 and $77,778 for the three months period ended March 31, 2021 and 2020.

Practical expedients and exemption

The company has not incurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Other service income is earned when services have been rendered.

Revenue by major product line

	For Three Months Ended March 31,
	2021		2020
Investment and corporate management consulting services	$	-	$	305,660
Training service		1,947		77,778
Third-party payment service		8,609		12,450
Trading business		3,236		11,928
Others		695		19,450
	$	14,487	$	427,266

Revenue by recognition over time vs point in time

	For Three Months Ended March 31,
	2021		2020
Revenue by recognition over time	$	-	$	305,660
Revenue by recognition at a point in time		14,487		121,606
	$	14,487	$	427,266

Revenue by recognition gross vs net

	For Three Months Ended March 31,
	2021		2020
Revenue by recognition gross	$	11,251	$	415,338
Revenue by recognition net		3,236		11,928
	$	14,487	$	427,266

Foreign Currency and Foreign Currency Translation

The functional currency of the Company and PGL is the United States dollar (“US dollar”). The functional currency of the PPBGL is the Hong Kong dollar. The Company’s subsidiary and VIEs with operations in PRC uses the local currency, the Chinese Yuan (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements.

Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the statements of comprehensive loss.

The unaudited condensed consolidated financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s statement of operation. Differences resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the unaudited condensed consolidated balance sheets.

Translation of amounts from RMB into U.S. dollars has been made at the following exchange rates:

Balance sheet items, except for equity accounts
March 31, 2021		RMB6.5518 to $1	HKD7.7746 to $1
December 31, 2020		RMB6.5250 to $1	HKD7.7534 to $1
Statement of operation and cash flows items
For the three-month period ended March 31, 2021		RMB6.4817 to $1	HKD7.7577 to $1
For the three-month period ended March 31, 2020		RMB6.9786 to $1	HKD7.7708 to $1

Net loss per share of common stock

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the statement of operation for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying unaudited condensed consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

	Three Months Ended March 31,
	2021		2020
Net income (loss) attributable to Porter Holding International, Inc.	$	245,826	$	(552,067	)
Weighted average number of common shares outstanding - basic and diluted		508,110,000		508,110,000
Basic and diluted loss per share	$	-	$	-

The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

Segments

The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company reports two reportable segments in consulting services, as well as training services and others.

Fair Value of Financial Instruments

U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is:

Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – include other inputs that are directly or indirectly observable in the market place.

Level 3 – unobservable inputs which are supported by little or no market activity.

The carrying value of the Company’s financial instruments, including cash, accounts and other receivables, other current assets, accounts and other payables, and other short-term liabilities approximate their fair value due to their short maturities.

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. The lease has remaining lease term of approximately four years. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term.

ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets.

ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities.

The Company recognized no impairment of ROU assets as of March 31, 2021 and December 31, 2020.

The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the unaudited condensed consolidated balance sheets.

Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued Accounting Standards Update No. 2016-13,”Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023.The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its consolidated financial statements, particularly its recognition of allowances for accounts receivable. 

Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. 

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BUSINESS COMBINATIONS

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

3. BUSINESS COMBINATIONS

Disposition

On July 15, 2020, Porter E-Commerce entered into the Agreement with Mr. Kezhan Ma, whereby Porter E-Commerce transferred its 57% equity interests in Maihuolang E-Commerce to Mr. Kezhan Ma, for cash consideration of RMB 650,000 (approximately $95,735) which amount is received on July 27, 2020. The Company did not report the operation of Maihuolang E-commerce as discontinued operation as the sale did not represent a strategic shift that would have a major effect on the Company’s operations and financial results. An impairment loss of $52,603 and a disposal gain of $4,791 were recognized for the year ended December 31, 2020.

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ACCOUNTS RECEIVABLE, NET

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4. ACCOUNTS RECEIVABLE, NET

Accounts receivable consist of the following:

	March 31, 2021			December 31, 2020
Billed	$	46,303		$	46,303
Unbilled		3,491			3,132
Accounts receivable		49,794		$	49,435
Less: allowance for doubtful accounts		(30,933	)		(30,933	)
	$	18,861		$	18,502

The following table sets forth the movement of allowance for doubtful accounts:

	March 31, 2021		December 31, 2020
Beginning	$	30,933	$	3,065
Additions		-		1,051,816
Write off		-		(1,023,948	)
Exchange rate difference		-		-
Balance	$	30,933	$	30,933

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PREPAYMENTS AND OTHER RECEIVABLES

3 Months Ended

Mar. 31, 2021

Disclosure Text Block Supplement [Abstract]

Other Current Assets [Text Block]

5. PREPAYMENTS AND OTHER RECEIVABLES

Prepayments and other receivables consist of the following:

	March 31, 2021		December 31, 2020
Prepayments	$	14,517	$	10,448
Others		21,181		35,867
	$	35,698	$	46,315

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EQUIPMENT, NET

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

6. EQUIPMENT, NET

Equipment, net consist of the following:

	March 31, 2021			December 31, 2020
Office and computer equipment	$	76,075		$	185,009
Less: Accumulated depreciation		(54,686	)		(149,130	)
		21,389			35,879
Impairment		-			(10,816	)
Exchange rate difference		-			(629	)
Net value	$	21,389		$	24,434

Depreciation expenses charged to the statements of operations for the three months ended March 31, 2021 and 2020 were $2,977 and $4,949, respectively.

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INTANGIBLE ASSETS, NET

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

7. INTANGIBLE ASSETS, NET

Intangible assets, net, consist of the following:

	March 31, 2021		December 31, 2020
Software copyright	$	-	$	-
Domain names and trademarks		-		42,473
Intangible asset		-		42,473
Less: Accumulated amortization		-		(18,126	)
				24,347
Impairment		-		(23,009	)
Exchange rate difference		-		(1,338	)
Net value	$	-	$	-

Amortization charged to the statements of operations for the three months period ended March 31, 2021 and 2020 were nil and $8,483, respectively.

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ACCRUALS AND OTHER PAYABLES

3 Months Ended

Mar. 31, 2021

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

8. ACCRUALS AND OTHER PAYABLES

Accruals and other payables consist of the following:

	March 31, 2021		December 31, 2020
Salary payables	$	30,036	$	185,396
Refund to a third party*		228,945		306,513
Accrued professional fees		19,778		33,735
Accrued rental expenses		31,555		155,539
Others		2,289		2,299
	$	312,603	$	683,482

*Refund to a third party is resulted from the fact that Henan Longji Real Estate Development Co., Ltd. (“Longji Real Estate”) filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to a loan of RMB 2 million (approximately $283,082) which occurred before Porter E-Commerce merged with the Company on April 13, 2020. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. This amount is co-related to the amount due from shareholders in Note 9.

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BALANCES WITH RELATED PARTIES

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

9. BALANCES WITH RELATED PARTIES

	Note	March 31, 2021		December 31, 2020
Due from shareholders
Mr. Zongjian Chen and Ms. Xiaomei Xiong (wife of Mr. Zongjian Chen)	(a)	$	305,260	$	306,513
Mr. Zongjian Chen (brother of Mr. Zonghua Chen)			28,692		28,907
		$	333,952	$	335,420
Due to shareholders
Mr. Zonghua Chen (the Company’s Chairman, Chief Executive Officer, Chief Financial Officer and President)		$	1,935,130	$	2,046,988
Ms. Xiaomei Xiong (wife of Mr. Zongjian Chen)			905,247		-
		$	2,840,377	$	2,046,988

(a) On April 13, 2020, Longji Real Estate filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to certain loan of RMB 2 million (approximately $283,082) which occurred before Porter E-Commerce merged with the Company. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. Porter E-Commerce, Zongjian Chen and Xue’an Yan were also jointly liable for the litigation costs of RMB11,400 (approximately $1,614). This is co-related to the amount of refund to a third party in Note 8.

All the above balances are due on demand, interest-free and unsecured. The Company used the funds for its operations. For the three months ended March 31, 2021, the Company had transactions amounted $1,530,917 from shareholders and $720,278 to shareholders, comparing to $1,002,142 from shareholders and $818,933 to shareholders for the same period in 2020.

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INCOME TAXES

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

10. INCOME TAXES

The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled.

ULNV is incorporated in the State of Nevada and is subject to the U.S. federal tax and has incurred net operating loss for income tax purposes through March 31, 2021. As of March 31, 2021, future net operating losses of approximately $54,437 from ULNV are available to offset future taxable income. Accumulated deficit as of March 31, 2021 and December 31, 2020 was approximately $4.2 million and $4.5 million, respectively.

The 2017 Tax Act created a new requirement that, for the periods beginning after January 1, 2018, certain income (referred to as global intangible low taxed income or “GILTI”) earned by foreign subsidiaries in excess of a deemed return on tangible assets of foreign corporations must be included in U.S. taxable income. The GILTI income is eligible for a deduction, which lowers the effective tax rate to 10.5% for calendar years 2018 through 2025 and 13.125% after 2025. Under U.S. GAAP, companies are allowed to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which a company is subject to the rules – the period cost method, or (ii) account for GILTI in a company’s measurement of deferred taxes – the deferred method. The Company elected to account for GILTI in the period the tax is incurred. The Company did not generate any GILTI during the three-month period ended March 31, 2021.

PGL is registered as an international business company and is exempted from corporation tax in Seychelles.

PPBGL is subject to Hong Kong profits tax rate of 16.5%. For the three-month period ended March 31, 2021 and 2020, it did not have any assessable profits arising in or derived from Hong Kong and accordingly no provision for Hong Kong profits tax was made.

PRC Tax

The Company’s subsidiary and consolidated VIEs in China are subject to corporate income tax (“CIT”) at 25% for the three-month period ended March 31, 2021 and 2020. As of March 31, 2021, the Company had approximately $2.9 million of net operating loss carried forward from the foreign subsidiaries which will expire in various years through 2026.

A reconciliation of the income tax expense determined at the statutory income tax rate to the Company’s income taxes is as follows:

	Three Months Ended March 31,
	2021			2020
Income (loss) before income taxes	$	242,422		$	(554,764	)
United States statutory income tax rate		21	%		21	%
Income tax benefit computed at statutory corporate income tax rate		50,909			(116,500	)
Reconciling items:
Effect of different tax jurisdictions		(14,680	)		(31,380	)
Non-deductible expenses		591			52,697
Change in valuation allowance		(36,820	)		95,183
Income tax expense	$	-		$	-

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of March 31, 2021 and December 31, 2020 are presented below

	March 31, 2021			December 31, 2020
Deferred tax assets:
Net operating loss carryforwards:
- United States of America	$	11,432		$	11,432
- Hong Kong		45,655			44,147
- PRC		727,978			766,306
		785,065			821,885
Less: Valuation allowance		(785,065	)		(821,885	)
Disposal:
- PRC		-			(187,240	)
Less: Valuation allowance		-			187,240
	$	-		$	-

Management believes that it is more likely than not that the Company will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As a result, a valuation allowance was provided against the full amount of the potential tax benefits.

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CHINA CONTRIBUTION PLAN

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Retirement Benefits [Text Block]

11. CHINA CONTRIBUTION PLAN

The Company’s subsidiaries and consolidated VIEs in China participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s subsidiaries and consolidated VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company’s China-based subsidiaries and consolidated VIEs have no further commitments beyond their monthly contributions. For the three months ended Mach 31, 2021 and 2020, the Company’s China based subsidiaries and consolidated VIEs contributed a total of $7,501 and $7,188, respectively, to these funds.

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OPERATING LEASE

3 Months Ended

Mar. 31, 2021

Disclosure Text Block [Abstract]

Lessee, Operating Leases [Text Block]

12. OPERATING LEASE

The Company has operating leases for its office facilities. The Company's leases have remaining terms of approximately four years. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes.

The Company subleases certain office space to a third party that has a remaining term of less than 12 months.

The following table provides a summary of leases by balance sheet location as of March 31, 2021 and December 31, 2020:

Assets/liabilities	March 31, 2021		December 31, 2020
Assets
Operating lease right-of-use assets	$	480,348	$	539,945
Liabilities
Operating lease liability - current	$	277,667	$	216,180
Operating lease liability - non-current		274,728		347,656
Total lease liabilities	$	552,395	$	563,836

The operating lease expenses for the three months ended March 31, 2021 and 2020 were as follows:

	Three months ended March 31,
Lease Cost	2021		2020
Operating lease cost	$	69,300	$	93,104

Maturities of operating lease liabilities at March 31, 2021 were as follows:

Maturity of Lease Liabilities	Operating Leases
12 months ending March 31,
2022		311,824
2023		285,838
Total lease payments		597,662
Less: interest		(45,267	)
Present value of lease payments	$	552,395

Lease liabilities include lease and non-lease component such as management fee. 

Future minimum lease payments, which do not include the non-lease components, as of March 31, 2021 were as follows:

12 months ending March 31,
2022	$	174,825
2023		213,675
Total	$	388,500

Lease Term and Discount Rate	March 31, 2021
Weighted-average remaining lease term (years)
Operating leases--- Shenzhen Development Center, 36/F, LuoHu, Shenzhen		1.92
Weighted-average discount rate (%)
Operating leases		8	%

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CONCENTRATIONS AND CREDIT RISK

3 Months Ended

Mar. 31, 2021

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

13. CONCENTRATIONS AND CREDIT RISK

(a) Concentrations

In the three months ended March 31, 2021, no customers accounted for more than 10% of the Company’s revenues, respectively.

In the three months ended March 31, 2020, two customers accounted for 72% and 12% of the Company’s revenues.

No other customer accounts for more than 10% of the Company’s revenue in the three months ended March 31, 2021 and 2020.

As of March 31, 2021, one customer accounted for 81% of the Company’s accounts receivable. As of December 31, 2020, one customer accounted for 83% of the Company’s accounts receivable.

(b) Credit risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of March 31, 2021, and December 31, 2020, substantially all of the Company’s cash were held by major financial institutions located in the PRC, which management believes are of high credit quality.

For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations.

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SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

14. SEGMENT REPORTING

During the period ended March 31, 2021, the Company reports two reportable segments in consulting services, as well as training services and others.

Revenues and associated costs are directly attributable to the related segments. Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, are managed centrally at a consolidated level.

The Company’s Chief Operating Decision Maker does not evaluate operating segments using asset information.

Information about segments during the periods presented were as follows. For comparative purposes, amounts in prior period has been recast:

	Three months ended March 31,
	2021			2020
Revenue
Consulting services	$	-		$	305,660
Training services and others		14,487			121,606
Total revenue		14,487			427,266
Loss from operations
Consulting services	$	(140,590	)	$	(436,187	)
Training services and others		(72,115	)		(453	)
Corporate costs, unallocated		(81,289	)		(138,142	)
Total loss from operations	$	(293,994	)	$	(574,782	)

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SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events [Text Block]

15. SUBSEQUENT EVENT

The Company has analyzed its operations subsequent to March 31, 2021 to the date these consolidation financial statements were issued. There is not material subsequent events to disclose in these consolidated financial statements.

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Accounting Policies, by Policy (Policies)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries and its variable interest entities. All significant inter-company transactions and balances have been eliminated in consolidation. 

The unaudited interim condensed consolidated financial information as of March 31, 2021, and for the three months periods ended March 31, 2021 and 2020 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have not been included. The unaudited interim condensed consolidated financial information should be read in conjunction with the Consolidated Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, previously filed with the SEC on April 15, 2021.

In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these unaudited condensed consolidated financial statements, which are of a normal and recurring nature, have been included. The results reported in the unaudited condensed consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year.

Going Concern, Policy [Policy Text Block]

Liquidity and Going Concern

The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements.

The Company has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) its recurring loss from operations, despite approximately $242,422 net income attributable to the Company’s stockholders for the three months ended March 31, 2021 due to a one time compensation from a project terminated by counter party, (2) its accumulated deficit of approximately $4,243,590 as of March 31, 2021 and (3) the fact that the Company had negative operating cash flows of approximately $162,925 for the three months ended March 31, 2021.

In evaluating if there is substantial doubt about its ability to continue as a going concern, the Company is trying to alleviate the going concern risk through (1) increasing cash generated from operations by controlling operating expenses and expanding more revenue streams, (2) loans from existing directors and shareholders, and (3) equity or debt financing. The Company has certain plans to mitigate these adverse conditions and to increase the liquidity of the Company.

As of March 31, 2021, our cash balance was $661,997 and our current liabilities exceed current assets by $2,871,508. Our cash balance as of March 31, 2021 may not be sufficient to support our operations for the next 12 months after the date that the financial statements issued. The negative operating results of cash flow and working capital for the quarter ended March 31, 2021 raise substantial doubt about our ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern.

During January to March 2021, the Company received loans from shareholders with approximately $1.4 million. On an on-going basis, the Company also received and will continue to receive financial support commitments from the Company’s related parties. However, if the Company is unable to obtain the necessary additional capital on a timely basis and on acceptable terms, the Company will be unable to implement its current plans for expansion, repay debt obligations or respond to competitive market pressures, which will have negative influence upon its business, prospects, financial condition and results of operations. 

The Company believes if it is unable to obtain its resources to fund operations, it may be required to delay, scale back or eliminate some or all of its planned operations, which may have a material adverse effect on its business, results of operations and ability to operate as a going concern.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of these unaudited condensed consolidated financial statements requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its unaudited condensed consolidated financial statements.

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

VIE Consolidation

The Company’s VIEs with the exception of Weifang Portercity and Porter Consulting, are wholly owned by Mr. Zonghua Chen and Ms. Xiaomei Xiong as nominee shareholders. For the consolidated VIEs, management made evaluations of the relationships between the Company and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Company controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Company is the primary beneficiary of its consolidated VIEs.

PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses in which the Company is engaged or could be deemed to be engaged. Consequently, the Company conducts certain of its operations and businesses in the PRC through its VIEs. The Company consolidates in its consolidated financial statements all of the VIEs of which the Company is the primary beneficiary.

The following financial information of the Company’s consolidated VIEs (including subsidiary of VIEs) is included in the accompanying unaudited condensed consolidated financial statements:

	March 31, 2021		December 31, 2020
ASSETS
CURRENT ASSETS
Cash	$	648,246	$	13,013
Accounts receivable, net		3,491		3,132
Prepayments and other receivables		35,650		46,026
Due from shareholders		434,192		435,975
Amount due from the Company and its non-VIE subsidiaries (1)		525,491		441,759
Total current assets		1,647,070		939,905
NON-CURRENT ASSETS
Long term rental deposit		38,434		38,592
Long term prepayment		4,660		5,758
Equipment, net		20,477		23,410
Operating lease right-of-use assets		480,348		539,945
Total non-current assets		543,919		607,705
TOTAL ASSETS	$	2,190,989	$	1,547,610
CURRENT LIABILITIES
Accounts payable	$	120,785	$	145,644
Accruals and other payables		291,985		645,073
Deferred revenue		290,173		355,398
Tax payable		80,411		91,596
Amounts due to shareholders of the Company		3,073,314		2,294,151
Operating lease liability - current		277,667		216,180
Total current liabilities		4,134,335		3,748,042
NON-CURRENT LIABILITIES
Operating lease liability - non-current		274,728		347,656
TOTAL LIABILITIES	$	4,409,063	$	4,095,698

(1) Amount due from the Company and its non-VIE subsidiaries consists of intercompany from other non-VIE subsidiaries within the Company. 

	Three months ended March 31,
	2021		2020
Net revenue	$	14,487	$	377,313
Net income (loss)	$	326,454	$	(464,933	)

	Three months ended March 31,
	2021			2020
Net cash used in operating activities	$	(68,456	)	$	(171,314	)
Net cash used in investing activities		-			(21,078	)
Net cash provided by financing activities		710,616			109,283

Revenue [Policy Text Block]

Revenue Recognition

The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five step model prescribed under Accounting Standards Update (“ASU”) No. 2014-09: (i) identify contract(s) with a customer: Due to impact of COVID-19, the Company, starting from first quarter of 2020, determines to receive cash prior to performing investment and corporate management consulting services in order to ensure probable collection of consideration and hence existence of a contract; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation.

Revenues are recognized when control of the promised goods or services is transferred to the customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expect to be entitled to in exchange for those goods or services.

The Company via Porter Consulting earns commissions of $8,609 and $12,450 for the three months ended March 31, 2021 and 2020 respectively, primarily from a third-party payment service provider when China UnionPay card transactions are completed and settled. Revenue related to commissions is recognized in the statement of operation at the time when the underlying transaction is completed.

The third-party payment provider is a China UnionPay card acquiring institution and earns processing fees from China UnionPay card transactions. The Company’s performance obligation is to promote, via Porter Consulting, the payment service of the third-party payment service provider to merchants in Shenzhen, for which the Company shares a portion of the processing fees earned by the third-party payment service provider from China UnionPay, as commission.

Starting from the second quarter of 2018, the Company via Portercity provides various consulting services to its clients, especially to those who have the intention to be publicly listed in the stock exchanges in the United States and other countries. The Company categorizes its consulting services into three phases:

Phase I consulting services primarily include due diligence review, market research and feasibility study, business plan drafting, accounting record review, and business analysis and recommendations etc. Management estimates that Phase I normally takes around three months to complete based on its past experiences.

Phase II consulting services primarily include reorganization, pre-listing education and tutoring, talent search, legal and audit firm recommendation and coordination, VIE contracts and other public-listing related documents review, merger and acquisition planning, investor referral and pre-listing equity financing source identification and recommendation, independent directors and audit committee candidates recommendation; shell company identification and recommendation for customers expecting to become publicly listed through reverse merger transaction; etc. Management estimates that Phase II normally takes about five months to complete based its past experiences.

Phase III consulting services primarily include assistance in preparation of customers’ registration statement under IPO transactions or Form 8-K under reverse merger transactions; assistance in answering comments and questions received from regulatory agencies etc. Management believes it is very difficult to estimate the timing of this phase of service as the completion of Phase III services is not within the Company’s control.

Under ASC Topic 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable. Each phase of consulting services is standalone and fees associated with each phase are usually clearly identified in service agreements. Revenue from providing Phase I and Phase II consulting services to customers is recognized based on the output methods, including surveys of performance completed to date or milestones reached of each phase only when the Company has an enforceable right to payment for performance completed to date. Otherwise, such revenue is recognized at a point in time when services are delivered and accepted by customers. Revenue from providing Phase III consulting services to customers is recognized upon completion of reverse merger transaction or IPO transaction, which is evidenced by filing of 8-K for reverse merger transaction or receipt of effective notice from regulatory agencies for IPO transaction. Revenue that has been billed and not yet recognized is reflected as deferred revenue on the consolidated balance sheets.

Depending on the complexity of the underlying service arrangement and related terms and conditions, significant judgments, assumptions and estimates may be required to determine when substantial delivery of contract elements has occurred, whether any significant ongoing obligations exist subsequent to contract execution, whether amounts due are collectible and the appropriate period or periods in which, or during which, the completion of the earnings process occurs. Depending on the magnitude of specific revenue arrangements, adjustment may be made to the judgments, assumptions and estimates regarding contracts executed in any specific period. Service income from consulting services, totaled nil and $305,660 for the three months period ended March 31, 2021 and 2020, is recognized when the service is performed.

In accordance with ASC 606, the Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned by PPBGL as commissions. When the Company is primarily obligated in a transaction, is subject to inventory risk, has latitude in establishing prices and selecting suppliers, or has several but not all of these indicators, revenues should be recorded on a gross basis. When the Company is not the primary obligor, does not bear the inventory risk and does not have the ability to establish the price, revenues are recorded on a net basis. The Company determined that it is not the primary obligor in its trading business. For the three months period ended March 31, 2021 and 2020, the Company recognized a net revenue of $3,236 and $11,928, when control of the products has transferred, being at the point the products are delivered to the customer and the customer has accepted the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.

Starting from the first quarter of 2019, the Company, via PPBGL, Maihuolang E-commerce and Porter Commercial, provides various training services to its clients, primarily related to e-commerce platform operation, expansion of channels and promotion strategy, and capital market operation, via live and online sessions. Under ASC Topic 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable. The fees associated with the course of training sessions are clearly identified in service agreements. Training service revenue is recognized at the time when the training sessions stipulated in the contract are completed. The Company recognized $1,947 and $77,778 for the three months period ended March 31, 2021 and 2020.

Practical expedients and exemption

The company has not incurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Other service income is earned when services have been rendered.

Revenue by major product line

	For Three Months Ended March 31,
	2021		2020
Investment and corporate management consulting services	$	-	$	305,660
Training service		1,947		77,778
Third-party payment service		8,609		12,450
Trading business		3,236		11,928
Others		695		19,450
	$	14,487	$	427,266

Revenue by recognition over time vs point in time

	For Three Months Ended March 31,
	2021		2020
Revenue by recognition over time	$	-	$	305,660
Revenue by recognition at a point in time		14,487		121,606
	$	14,487	$	427,266

Revenue by recognition gross vs net

	For Three Months Ended March 31,
	2021		2020
Revenue by recognition gross	$	11,251	$	415,338
Revenue by recognition net		3,236		11,928
	$	14,487	$	427,266

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency and Foreign Currency Translation

The functional currency of the Company and PGL is the United States dollar (“US dollar”). The functional currency of the PPBGL is the Hong Kong dollar. The Company’s subsidiary and VIEs with operations in PRC uses the local currency, the Chinese Yuan (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements.

Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the statements of comprehensive loss.

The unaudited condensed consolidated financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s statement of operation. Differences resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the unaudited condensed consolidated balance sheets.

Translation of amounts from RMB into U.S. dollars has been made at the following exchange rates:

Balance sheet items, except for equity accounts
March 31, 2021		RMB6.5518 to $1	HKD7.7746 to $1
December 31, 2020		RMB6.5250 to $1	HKD7.7534 to $1
Statement of operation and cash flows items
For the three-month period ended March 31, 2021		RMB6.4817 to $1	HKD7.7577 to $1
For the three-month period ended March 31, 2020		RMB6.9786 to $1	HKD7.7708 to $1

Earnings Per Share, Policy [Policy Text Block]

Net loss per share of common stock

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the statement of operation for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying unaudited condensed consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

	Three Months Ended March 31,
	2021		2020
Net income (loss) attributable to Porter Holding International, Inc.	$	245,826	$	(552,067	)
Weighted average number of common shares outstanding - basic and diluted		508,110,000		508,110,000
Basic and diluted loss per share	$	-	$	-

The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

Segment Reporting, Policy [Policy Text Block]

Segments

The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company reports two reportable segments in consulting services, as well as training services and others.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is:

Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – include other inputs that are directly or indirectly observable in the market place.

Level 3 – unobservable inputs which are supported by little or no market activity.

The carrying value of the Company’s financial instruments, including cash, accounts and other receivables, other current assets, accounts and other payables, and other short-term liabilities approximate their fair value due to their short maturities.

Lessee, Leases [Policy Text Block]

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. The lease has remaining lease term of approximately four years. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term.

ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets.

ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities.

The Company recognized no impairment of ROU assets as of March 31, 2021 and December 31, 2020.

The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the unaudited condensed consolidated balance sheets

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued Accounting Standards Update No. 2016-13,”Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023.The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its consolidated financial statements, particularly its recognition of allowances for accounts receivable. 

Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Schedule of Variable Interest Entities [Table Text Block]

The following financial information of the Company’s consolidated VIEs (including subsidiary of VIEs) is included in the accompanying unaudited condensed consolidated financial statements:

	March 31, 2021		December 31, 2020
ASSETS
CURRENT ASSETS
Cash	$	648,246	$	13,013
Accounts receivable, net		3,491		3,132
Prepayments and other receivables		35,650		46,026
Due from shareholders		434,192		435,975
Amount due from the Company and its non-VIE subsidiaries (1)		525,491		441,759
Total current assets		1,647,070		939,905
NON-CURRENT ASSETS
Long term rental deposit		38,434		38,592
Long term prepayment		4,660		5,758
Equipment, net		20,477		23,410
Operating lease right-of-use assets		480,348		539,945
Total non-current assets		543,919		607,705
TOTAL ASSETS	$	2,190,989	$	1,547,610
CURRENT LIABILITIES
Accounts payable	$	120,785	$	145,644
Accruals and other payables		291,985		645,073
Deferred revenue		290,173		355,398
Tax payable		80,411		91,596
Amounts due to shareholders of the Company		3,073,314		2,294,151
Operating lease liability - current		277,667		216,180
Total current liabilities		4,134,335		3,748,042
NON-CURRENT LIABILITIES
Operating lease liability - non-current		274,728		347,656
TOTAL LIABILITIES	$	4,409,063	$	4,095,698

	Three months ended March 31,
	2021		2020
Net revenue	$	14,487	$	377,313
Net income (loss)	$	326,454	$	(464,933	)

	Three months ended March 31,
	2021			2020
Net cash used in operating activities	$	(68,456	)	$	(171,314	)
Net cash used in investing activities		-			(21,078	)
Net cash provided by financing activities		710,616			109,283

(1) Amount due from the Company and its non-VIE subsidiaries consists of intercompany from other non-VIE subsidiaries within the Company. 

Revenue from External Customers by Products and Services [Table Text Block]

Revenue by major product line

	For Three Months Ended March 31,
	2021		2020
Investment and corporate management consulting services	$	-	$	305,660
Training service		1,947		77,778
Third-party payment service		8,609		12,450
Trading business		3,236		11,928
Others		695		19,450
	$	14,487	$	427,266

Revenue by Recognition Over Time vs Point in Time [Table Text Block]

Revenue by recognition over time vs point in time

	For Three Months Ended March 31,
	2021		2020
Revenue by recognition over time	$	-	$	305,660
Revenue by recognition at a point in time		14,487		121,606
	$	14,487	$	427,266

Revenue by Gross vs Net [Table Text Block]

	For Three Months Ended March 31,
	2021		2020
Revenue by recognition gross	$	11,251	$	415,338
Revenue by recognition net		3,236		11,928
	$	14,487	$	427,266

Schedule of Reporting Currency Exchange Rates [Table Text Block]

Balance sheet items, except for equity accounts
March 31, 2021		RMB6.5518 to $1	HKD7.7746 to $1
December 31, 2020		RMB6.5250 to $1	HKD7.7534 to $1
Statement of operation and cash flows items
For the three-month period ended March 31, 2021		RMB6.4817 to $1	HKD7.7577 to $1
For the three-month period ended March 31, 2020		RMB6.9786 to $1	HKD7.7708 to $1

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the statement of operation for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying unaudited condensed consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

	Three Months Ended March 31,
	2021		2020
Net income (loss) attributable to Porter Holding International, Inc.	$	245,826	$	(552,067	)
Weighted average number of common shares outstanding - basic and diluted		508,110,000		508,110,000
Basic and diluted loss per share	$	-	$	-

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ACCOUNTS RECEIVABLE, NET (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Accounts receivable consist of the following:

	March 31, 2021			December 31, 2020
Billed	$	46,303		$	46,303
Unbilled		3,491			3,132
Accounts receivable		49,794		$	49,435
Less: allowance for doubtful accounts		(30,933	)		(30,933	)
	$	18,861		$	18,502

Accounts Receivable, Allowance for Credit Loss [Table Text Block]

The following table sets forth the movement of allowance for doubtful accounts:

	March 31, 2021		December 31, 2020
Beginning	$	30,933	$	3,065
Additions		-		1,051,816
Write off		-		(1,023,948	)
Exchange rate difference		-		-
Balance	$	30,933	$	30,933

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PREPAYMENTS AND OTHER RECEIVABLES (Tables)

3 Months Ended

Mar. 31, 2021

Disclosure Text Block Supplement [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

Prepayments and other receivables consist of the following:

	March 31, 2021		December 31, 2020
Prepayments	$	14,517	$	10,448
Others		21,181		35,867
	$	35,698	$	46,315

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EQUIPMENT, NET (Tables)

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Equipment, net consist of the following:

	March 31, 2021			December 31, 2020
Office and computer equipment	$	76,075		$	185,009
Less: Accumulated depreciation		(54,686	)		(149,130	)
		21,389			35,879
Impairment		-			(10,816	)
Exchange rate difference		-			(629	)
Net value	$	21,389		$	24,434

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INTANGIBLE ASSETS, NET (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

Intangible assets, net, consist of the following:

	March 31, 2021		December 31, 2020
Software copyright	$	-	$	-
Domain names and trademarks		-		42,473
Intangible asset		-		42,473
Less: Accumulated amortization		-		(18,126	)
				24,347
Impairment		-		(23,009	)
Exchange rate difference		-		(1,338	)
Net value	$	-	$	-

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ACCRUALS AND OTHER PAYABLES (Tables)

3 Months Ended

Mar. 31, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

Accruals and other payables consist of the following:

	March 31, 2021		December 31, 2020
Salary payables	$	30,036	$	185,396
Refund to a third party*		228,945		306,513
Accrued professional fees		19,778		33,735
Accrued rental expenses		31,555		155,539
Others		2,289		2,299
	$	312,603	$	683,482

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BALANCES WITH RELATED PARTIES (Tables)

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

	Note	March 31, 2021		December 31, 2020
Due from shareholders
Mr. Zongjian Chen and Ms. Xiaomei Xiong (wife of Mr. Zongjian Chen)	(a)	$	305,260	$	306,513
Mr. Zongjian Chen (brother of Mr. Zonghua Chen)			28,692		28,907
		$	333,952	$	335,420
Due to shareholders
Mr. Zonghua Chen (the Company’s Chairman, Chief Executive Officer, Chief Financial Officer and President)		$	1,935,130	$	2,046,988
Ms. Xiaomei Xiong (wife of Mr. Zongjian Chen)			905,247		-
		$	2,840,377	$	2,046,988

(a) On April 13, 2020, Longji Real Estate filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to certain loan of RMB 2 million (approximately $283,082) which occurred before Porter E-Commerce merged with the Company. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. Porter E-Commerce, Zongjian Chen and Xue’an Yan were also jointly liable for the litigation costs of RMB11,400 (approximately $1,614). This is co-related to the amount of refund to a third party in Note 8.

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the income tax expense determined at the statutory income tax rate to the Company’s income taxes is as follows:

	Three Months Ended March 31,
	2021			2020
Income (loss) before income taxes	$	242,422		$	(554,764	)
United States statutory income tax rate		21	%		21	%
Income tax benefit computed at statutory corporate income tax rate		50,909			(116,500	)
Reconciling items:
Effect of different tax jurisdictions		(14,680	)		(31,380	)
Non-deductible expenses		591			52,697
Change in valuation allowance		(36,820	)		95,183
Income tax expense	$	-		$	-

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of March 31, 2021 and December 31, 2020 are presented below

	March 31, 2021			December 31, 2020
Deferred tax assets:
Net operating loss carryforwards:
- United States of America	$	11,432		$	11,432
- Hong Kong		45,655			44,147
- PRC		727,978			766,306
		785,065			821,885
Less: Valuation allowance		(785,065	)		(821,885	)
Disposal:
- PRC		-			(187,240	)
Less: Valuation allowance		-			187,240
	$	-		$	-

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OPERATING LEASE (Tables)

3 Months Ended

Mar. 31, 2021

Disclosure Text Block [Abstract]

Lessee, Operating Lease, Disclosure [Table Text Block]

The following table provides a summary of leases by balance sheet location as of March 31, 2021 and December 31, 2020:

Assets/liabilities	March 31, 2021		December 31, 2020
Assets
Operating lease right-of-use assets	$	480,348	$	539,945
Liabilities
Operating lease liability - current	$	277,667	$	216,180
Operating lease liability - non-current		274,728		347,656
Total lease liabilities	$	552,395	$	563,836

Lease, Cost [Table Text Block]

The operating lease expenses for the three months ended March 31, 2021 and 2020 were as follows:

	Three months ended March 31,
Lease Cost	2021		2020
Operating lease cost	$	69,300	$	93,104

Lease Term and Discount Rate	March 31, 2021
Weighted-average remaining lease term (years)
Operating leases--- Shenzhen Development Center, 36/F, LuoHu, Shenzhen		1.92
Weighted-average discount rate (%)
Operating leases		8	%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Maturities of operating lease liabilities at March 31, 2021 were as follows:

Maturity of Lease Liabilities	Operating Leases
12 months ending March 31,
2022		311,824
2023		285,838
Total lease payments		597,662
Less: interest		(45,267	)
Present value of lease payments	$	552,395

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Future minimum lease payments, which do not include the non-lease components, as of March 31, 2021 were as follows:

12 months ending March 31,
2022	$	174,825
2023		213,675
Total	$	388,500

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SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Information about segments during the periods presented were as follows. For comparative purposes, amounts in prior period has been recast:

	Three months ended March 31,
	2021			2020
Revenue
Consulting services	$	-		$	305,660
Training services and others		14,487			121,606
Total revenue		14,487			427,266
Loss from operations
Consulting services	$	(140,590	)	$	(436,187	)
Training services and others		(72,115	)		(453	)
Corporate costs, unallocated		(81,289	)		(138,142	)
Total loss from operations	$	(293,994	)	$	(574,782	)

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ORGANIZATION AND BUSINESS (Details)							1 Months Ended
	Jul. 31, 2020 USD ($)	Jul. 31, 2020 CNY (¥)	Jul. 15, 2020 USD ($)	Jul. 15, 2020 CNY (¥)	Jul. 01, 2020 USD ($)	Jul. 01, 2020 CNY (¥)	Oct. 31, 2019 USD ($)	Oct. 31, 2019 CNY (¥)	Aug. 31, 2019 USD ($)	Aug. 31, 2019 CNY (¥)
Shenzhen Qianhai Maihoulang E-Commerce Co. Ltd. ("Maihoulang") [Member]
ORGANIZATION AND BUSINESS (Details) [Line Items]
Equity Method Investment, Ownership Percentage							57.00%	57.00%	60.00%	60.00%
Subsidiary or Equity Method Investee, Cumulative Proceeds Received on All Transactions							$ 756,005	¥ 5,263,157	$ 718,205	¥ 5,000,000
Shenzhen Qianhai Maihoulang E-Commerce Co. Ltd. ("Maihoulang") [Member] | Kezhan Ma [Member]
ORGANIZATION AND BUSINESS (Details) [Line Items]
Equity Method Investment, Ownership Percentage			57.00%	57.00%
Proceeds from Divestiture of Businesses			$ 95,735	¥ 650,000
Asset Impairment Charges			52,603
Gain (Loss) on Disposition of Business			$ 4,791
Shenzhen Porter Shops Lot Technology Co., Ltd. [Member]
ORGANIZATION AND BUSINESS (Details) [Line Items]
Equity Method Investment, Ownership Percentage	85.00%	85.00%
Subsidiary or Equity Method Investee, Cumulative Proceeds Received on All Transactions	$ 173,275	¥ 1,176,470			$ 147,284	¥ 1,000,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 242,422	$ (554,764)
Retained Earnings (Accumulated Deficit)	(4,243,590)		$ (4,489,416)
Net Cash Provided by (Used in) Operating Activities	(162,925)	(283,382)
Cash and Cash Equivalents, at Carrying Value	661,997	142,729	$ 24,912	$ 224,733
Working Capital (Deficit)	(2,871,508)
Proceeds from Related Party Debt	1,400,000
Commissions Revenue	8,609	12,450
Revenues	$ 14,487	427,266
Number of Reporting Units	2
Lessee, Operating Lease, Term of Contract	4 years
Consulting Services [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Contract with Customer, Liability, Revenue Recognized		305,660
Cosmetic Trading Business [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Revenues	3,236	11,928
Training Service Revenue [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Revenues	$ 1,947	$ 77,778

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Variable Interest Entities - Variable Interest Entity, Primary Beneficiary [Member] - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
CURRENT ASSETS
Cash	$ 648,246		$ 13,013
Accounts receivable, net	3,491		3,132
Prepayments and other receivables	35,650		46,026
Due from shareholders	434,192		435,975
Amount due from the Company and its non-VIE subsidiaries (1)	525,491		441,759
Total current assets	1,647,070		939,905
NON-CURRENT ASSETS
Long term rental deposit	38,434		38,592
Long term prepayment	4,660		5,758
Equipment, net	20,477		23,410
Operating lease right-of-use assets	480,348		539,945
Total non-current assets	543,919		607,705
TOTAL ASSETS	2,190,989		1,547,610
CURRENT LIABILITIES
Accounts payable	120,785		145,644
Accruals and other payables	291,985		645,073
Deferred revenue	290,173		355,398
Tax payable	80,411		91,596
Amounts due to shareholders of the Company	3,073,314		2,294,151
Operating lease liability - current	277,667		216,180
Total current liabilities	4,134,335		3,748,042
NON-CURRENT LIABILITIES
Operating lease liability - non-current	274,728		347,656
TOTAL LIABILITIES	4,409,063		$ 4,095,698
Net revenue	14,487	$ 377,313
Net income (loss)	326,454	(464,933)
Net cash used in operating activities	(68,456)	(171,314)
Net cash used in investing activities	0	(21,078)
Net cash provided by financing activities	$ 710,616	$ 109,283

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by Major Product Line - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue from External Customer [Line Items]
Revenue	$ 14,487	$ 427,266
Investment and Corporate Management Consulting Services [Member]
Revenue from External Customer [Line Items]
Revenue	0	305,660
Training Service [Member]
Revenue from External Customer [Line Items]
Revenue	1,947	77,778
Third-Party Payment Service [Member]
Revenue from External Customer [Line Items]
Revenue	8,609	12,450
Cosmetic Trading Business [Member]
Revenue from External Customer [Line Items]
Revenue	3,236	11,928
Product and Service, Other [Member]
Revenue from External Customer [Line Items]
Revenue	$ 695	$ 19,450

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by recognition over time vs point in time - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by recognition over time vs point in time [Line Items]
Revenue	$ 14,487	$ 427,266
Revenue Recognized Over Time [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by recognition over time vs point in time [Line Items]
Revenue	0	305,660
Revenue Recognized at a Point in Time [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by recognition over time vs point in time [Line Items]
Revenue	$ 14,487	$ 121,606

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by Gross vs Net - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by Gross vs Net [Line Items]
Revenue	$ 14,487	$ 427,266
Revenue By Gross [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by Gross vs Net [Line Items]
Revenue	11,251	415,338
Revenue by Net [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue by Gross vs Net [Line Items]
Revenue	$ 3,236	$ 11,928

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Reporting Currency Exchange Rates	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Income Statement and Cash Flows Items [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Reporting Currency Exchange Rates [Line Items]
Exchange Rates	1		1
Balance Sheet Items [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Reporting Currency Exchange Rates [Line Items]
Exchange Rates	1	1
China, Yuan Renminbi | Income Statement and Cash Flows Items [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Reporting Currency Exchange Rates [Line Items]
Exchange Rates	6.4817		6.9786
China, Yuan Renminbi | Balance Sheet Items [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Reporting Currency Exchange Rates [Line Items]
Exchange Rates	6.5518	6.5250
Hong Kong, Dollars | Income Statement and Cash Flows Items [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Reporting Currency Exchange Rates [Line Items]
Exchange Rates	7.7577		7.7708
Hong Kong, Dollars | Balance Sheet Items [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Reporting Currency Exchange Rates [Line Items]
Exchange Rates	7.7746	7.7534

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of Earnings Per Share, Basic and Diluted [Abstract]
Net loss attributable to Porter Holding International, Inc.	$ 245,826	$ (552,067)
Weighted average number of common shares outstanding - basic and diluted	508,110,000	508,110,000
Basic and diluted loss per share	$ 0	$ 0

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BUSINESS COMBINATIONS (Details) - Shenzhen Qianhai Maihoulang E-Commerce Co. Ltd. ("Maihoulang") [Member] - Kezhan Ma [Member]	Jul. 15, 2020 USD ($)	Jul. 15, 2020 CNY (¥)
BUSINESS COMBINATIONS (Details) [Line Items]
Equity Method Investment, Ownership Percentage	57.00%	57.00%
Proceeds from Divestiture of Businesses	$ 95,735	¥ 650,000
Asset Impairment Charges	52,603
Gain (Loss) on Disposition of Business	$ 4,791

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ACCOUNTS RECEIVABLE, NET (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract]
Billed	$ 46,303	$ 46,303
Unbilled	3,491	3,132
Accounts receivable	49,794	49,435
Less: allowance for doubtful accounts	(30,933)	(30,933)
	$ 18,861	$ 18,502

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ACCOUNTS RECEIVABLE, NET (Details) - Accounts Receivable, Allowance for Credit Loss - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Abstract]
Balance	$ 30,933	$ 3,065	$ 3,065
Additions	0	$ 164,082	1,051,816
Write off	0		(1,023,948)
Exchange rate difference	0		0
Balance	$ 30,933		$ 30,933

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PREPAYMENTS AND OTHER RECEIVABLES (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets [Abstract]
Prepayments	$ 14,517	$ 10,448
Others	21,181	35,867
	$ 35,698	$ 46,315

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EQUIPMENT, NET (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 2,977	$ 4,949

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EQUIPMENT, NET (Details) - Property, Plant and Equipment - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Office and computer equipment	$ 76,075	$ 185,009
Less: Accumulated depreciation	(54,686)	(149,130)
	21,389	35,879
Impairment	0	(10,816)
Exchange rate difference	0	(629)
Net value	$ 21,389	$ 24,434

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INTANGIBLE ASSETS, NET (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets		$ 8,483

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INTANGIBLE ASSETS, NET (Details) - Schedule of Finite-Lived Intangible Assets - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible Asset, gross	$ 0	$ 42,473
Less: Accumulated amortization	0	(18,126)
		24,347
Impairment	0	(23,009)
Exchange rate difference	0	(1,338)
Net value	0	0
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Asset, gross	0	0
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Asset, gross	$ 0	$ 42,473

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ACCRUALS AND OTHER PAYABLES (Details) ¥ in Millions	May 10, 2020 USD ($)	May 10, 2020 CNY (¥)
Payables and Accruals [Abstract]
Debt Instrument, Face Amount	$ 283,082	¥ 2
Number of Installments	2
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.00%
Number of Shareholders	2

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ACCRUALS AND OTHER PAYABLES (Details) - Schedule of Accrued Liabilities - USD ($)		Mar. 31, 2021	Dec. 31, 2020
Schedule of Accrued Liabilities [Abstract]
Salary payables		$ 30,036	$ 185,396
Refund to a third party	[1]	228,945	306,513
Accrued professional fees		19,778	33,735
Accrued rental expenses		31,555	155,539
Others		2,289	2,299
Accruals and other payables		$ 312,603	$ 683,482

[1] Refund to a third party is resulted from the fact that Henan Longji Real Estate Development Co., Ltd. (“Longji Real Estate”) filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to a loan of RMB 2 million (approximately $283,082) which occurred before Porter E-Commerce merged with the Company on April 13, 2020. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. This amount is co-related to the amount due from shareholders in Note 9.

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BALANCES WITH RELATED PARTIES (Details)					3 Months Ended
	May 10, 2020 USD ($)	May 10, 2020 CNY (¥)	Apr. 13, 2020 USD ($)	Apr. 13, 2020 CNY (¥)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)
BALANCES WITH RELATED PARTIES (Details) [Line Items]
Loss Contingency, Damages Sought, Value			$ 283,082	¥ 2,000,000
Number of Installments	2	2
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.00%
Litigation Settlement, Expense	$ 1,614
Increase (Decrease) Due from Other Related Parties					$ (1,530,917)	$ 1,002,142
Increase (Decrease) in Due to Other Related Parties					$ 720,278	$ 818,933
Zonghua Chen [Member]
BALANCES WITH RELATED PARTIES (Details) [Line Items]
Litigation Settlement, Expense | ¥		¥ 11,400

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BALANCES WITH RELATED PARTIES (Details) - Schedule of Related Party Transactions - USD ($)		Mar. 31, 2021	Dec. 31, 2020
Due from shareholders
Due from shareholders		$ 333,952	$ 335,420
Due to shareholders
Due to Shareholders		2,840,377	2,046,988
Immediate Family Member of Management or Principal Owner [Member]
Due from shareholders
Due from shareholders	[1]	305,260	306,513
Zongjian Chen [Member]
Due from shareholders
Due from shareholders		28,692	28,907
Zonghua Chen [Member]
Due to shareholders
Due to Shareholders		1,935,130	2,046,988
Xiaomei Xiong [Member]
Due to shareholders
Due to Shareholders		$ 905,247	$ 0

[1] On April 13, 2020, Longji Real Estate filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to certain loan of RMB 2 million (approximately $283,082) which occurred before Porter E-Commerce merged with the Company. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. Porter E-Commerce, Zongjian Chen and Xue’an Yan were also jointly liable for the litigation costs of RMB11,400 (approximately $1,614). This is co-related to the amount of refund to a third party in Note 8.

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INCOME TAXES (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2020
INCOME TAXES (Details) [Line Items]
Retained Earnings (Accumulated Deficit) (in Dollars)	$ (4,243,590)			$ (4,489,416)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
HONG KONG | Foreign Tax Authority [Member]
INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			16.50%
CHINA | Foreign Tax Authority [Member]
INCOME TAXES (Details) [Line Items]
Operating Loss Carryforwards (in Dollars)	$ 2.9
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	25.00%	25.00%
Operating Loss Carryforwards, Expiration Date	2026
ULNY [Member]
INCOME TAXES (Details) [Line Items]
Operating Loss Carryforwards (in Dollars)	$ 54,437
Calendar Years 2018 through 2025 [Member]
INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Deduction, Extraterritorial Income Exclusion, Percent			10.50%
Calendar Years after 2025 [Member]
INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Deduction, Extraterritorial Income Exclusion, Percent			13.125%

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INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of Effective Income Tax Rate Reconciliation [Abstract]
Income (loss) before income taxes	$ 242,422	$ (554,764)
United States statutory income tax rate	21.00%	21.00%
Income tax benefit computed at statutory corporate income tax rate	$ 50,909	$ (116,500)
Reconciling items:
Effect of different tax jurisdictions	(14,680)	(31,380)
Non-deductible expenses	591	52,697
Change in valuation allowance	(36,820)	95,183
Income tax expense	$ 0	$ 0

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INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($)	Mar. 31, 2021	Dec. 31, 2020
INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities [Line Items]
Deferred tax assets, gross	$ 785,065	$ 821,885
Less: Valuation allowance	(785,065)	(821,885)
- PRC	0	(187,240)
Less: Valuation allowance	0	187,240
Deferred tax assets, net	0	0
UNITED STATES
INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities [Line Items]
Deferred tax assets, gross	11,432	11,432
HONG KONG
INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities [Line Items]
Deferred tax assets, gross	45,655	44,147
CHINA
INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities [Line Items]
Deferred tax assets, gross	$ 727,978	$ 766,306

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CHINA CONTRIBUTION PLAN (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
The Company’s Subsidiary and VIEs in China [Member]
CHINA CONTRIBUTION PLAN (Details) [Line Items]
Proceeds from Contributions from Affiliates	$ 7,501	$ 7,188

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OPERATING LEASE (Details)	Mar. 31, 2021
Disclosure Text Block [Abstract]
Lessee, Operating Lease, Term of Contract	4 years

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OPERATING LEASE (Details) - Lessee, Operating Lease, Disclosure - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Lessee, Operating Lease, Disclosure [Abstract]
Operating lease right-of-use assets	$ 480,348	$ 539,945
Operating lease liability - current	277,667	216,180
Operating lease liability - non-current	274,728	347,656
Total lease liabilities	$ 552,395	$ 563,836

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OPERATING LEASE (Details) - Lease, Cost - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
OPERATING LEASE (Details) - Lease, Cost [Line Items]
Operating lease cost	$ 93,104
Weighted-average discount rate		8.00%
Room 02,20/F,Saixi Technology Building, Nanshan, Shenzhen [Member]
OPERATING LEASE (Details) - Lease, Cost [Line Items]
Weighted-average remaining lease term, Operating leases		1 year 335 days

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OPERATING LEASE (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Lessee, Operating Lease, Liability, Maturity [Abstract]
2022	$ 311,824
2023	285,838
Total lease payments	597,662
Less: interest	(45,267)
Present value of lease payments	$ 552,395	$ 563,836

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OPERATING LEASE (Details) - Schedule of Future Minimum Rental Payments for Operating Leases	Mar. 31, 2021 USD ($)
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract]
2022	$ 174,825
2023	213,675
Total	$ 388,500

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CONCENTRATIONS AND CREDIT RISK (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020
Customer One [Member]
CONCENTRATIONS AND CREDIT RISK (Details) [Line Items]
Concentration Risk, Percentage	72.00%
Customer Two [Member]
CONCENTRATIONS AND CREDIT RISK (Details) [Line Items]
Concentration Risk, Percentage	12.00%
One Customer [Member]
CONCENTRATIONS AND CREDIT RISK (Details) [Line Items]
Concentration Risk, Percentage	81.00%
Four Customers [Member]
CONCENTRATIONS AND CREDIT RISK (Details) [Line Items]
Concentration Risk, Percentage		83.00%

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SEGMENT REPORTING (Details)	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Number of Reportable Segments	2

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SEGMENT REPORTING (Details) - Schedule of Segment Reporting Information, by Segment - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Revenue	$ 14,487	$ 427,266
Loss from operations	(293,994)	(574,782)
Consulting Services [Member]
Segment Reporting Information [Line Items]
Revenue	0	305,660
Loss from operations	(140,590)	(436,187)
Training Service [Member]
Segment Reporting Information [Line Items]
Revenue	14,487	121,606
Loss from operations	(72,115)	(453)
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Loss from operations	$ (81,289)	$ (138,142)