10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2018

or

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

For the transition period from ___________ to ___________

Commission File Number: 333-207765

ACRO BIOMEDICAL CO., LTD.

(Exact name of registrant as specified in its charter)

Nevada	47-1950356
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

2175 Visionary Way, Suite 1160; Fishers, Indiana 46038

(Address of principal executive offices)

(317) 286-6788

(Registrant’s telephone number, including area code)

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small 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	x
(Do not check if a smaller reporting company)		Emerging growth company	¨

If an emerging growth company, indicate by a 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    x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 47,660,000 shares of common stock on August 13, 2018.

ACRO BIOMEDICAL CO., LTD.

INDEX

		Page No.
Part I: Financial Information
Item 1:	Financial Statements	4
	Unaudited Balance Sheets as of June 30, 2018 and September 30, 2017	4
	Unaudited Statements of Operations for the three and nine months ended June 30, 2018 and 2017	5
	Unaudited Statements of Cash Flows for the nine months ended June 30, 2018 and 2017	6
	Notes to Unaudited Financial Statements	7
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3:	Quantitative and Qualitative Disclosures about Market Risk	12
Item 4:	Controls and Procedures	12
Part II: Other Information
Item 6:	Exhibits	13

 

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FORWARD LOOKING STATEMENTS

This report contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this report. Additionally, statements concerning future matters are forward-looking statements.

Although forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings “Risks Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K for the year ended September 30, 2017, in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q and information contained in other reports that we file with the SEC. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.

We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. You can also read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330 FREE.

We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

 

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PART 1: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

ACRO BIOMEDICAL CO., LTD.

Balance Sheets

(Unaudited)

	June 30,		September 30,
	2018		2017
ASSETS
Current Assets
Cash and cash equivalents	$	4,615	$	36,810
Inventories		900,000		-
Purchase deposit to vendor		20,000		481,000
Prepaid expenses		80,500		30,500
Total Current Assets		1,005,115		548,310
Security deposit		4,992		-
TOTAL ASSETS	$	1,010,107	$	548,310
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	3,876	$	600
Income tax payable		88,476		-
Due to related parties		140,436		36,379
Total Current Liabilities		232,788		36,979
TOTAL LIABILITIES		232,788		36,979
Stockholders’ Equity
Preferred stock: 25,000,000 authorized; $0.001 par value; no shares issued and outstanding		-		-
Common stock: 100,000,000 authorized; $0.001 par value; 47,660,000 shares issued and outstanding		47,660		47,660
Additional paid-in capital		557,912		557,912
Retained earnings (accumulated deficit)		171,747		(94,241	)
Total Stockholders’ Equity		777,319		511,331
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,010,107	$	548,310

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

 

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ACRO BIOMEDICAL CO., LTD.

Statements of Operations

(Unaudited)

	Three Months Ended June 30,					Nine Months Ended June 30,
	2018		2017			2018		2017
Revenues	$	2,199,000	$	-		$	5,608,000	$	-
Cost of revenues		1,959,100		-			5,027,200		-
Gross profit		239,900		-			580,800		-
Operating expenses
General and administrative		63,674		11,887			226,336		41,743
Total operating expenses		63,674		11,887			226,336		41,743
Income (loss) before provision for income taxes		176,226		(11,887	)		354,464		(41,743	)
Provision for income taxes		59,917		-			88,476		-
Net income (loss)	$	116,309	$	(11,887	)	$	265,988	$	(41,743	)
Basic and diluted income (loss) per share of common stock	$	0.00	$	(0.00	)	$	0.01	$	(0.00	)
Weighted average number of shares of common stock outstanding		47,660,000		47,160,000			47,660,000		47,160,000

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

 

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ACRO BIOMEDICAL CO., LTD.

Statements of Cash Flows

(Unaudited)

	Nine Months Ended June 30,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	265,988		$	(41,743	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Changes in operating assets and liabilities:
Inventories and purchase deposit to vendor		(439,000	)		-
Prepaid expenses		(50,000	)		(2,500	)
Security deposit		(4,992	)		-
Accounts payable and accrued expenses		3,276			(2,926	)
Income tax payable		88,476			-
Net cash used in operating activities		(136,252	)		(47,169	)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties		104,057			47,015
Repayment to related parties		-			(2,379	)
Net cash provided by financing activities		104,057			44,636
Net change in cash and cash equivalents		(32,195	)		(2,533	)
Cash at beginning of period		36,810			2,533
Cash at end of period	$	4,615		$	-
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	$	-		$	-
Cash paid for interest	$	-		$	-
NON CASH INVESTING AND FINANCING ACTIVITIES
Debt forgiveness recorded in additional paid-in capital	$	-		$	28,372

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

 

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ACRO BIOMEDICAL CO., LTD.

Notes to Financial Statements

June 30, 2018

(Unaudited)

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Acro Biomedical Co., Ltd. (the “Company”) is a Nevada corporation incorporated on September 24, 2014 under the name Killer Waves Hawaii, Inc. On January 30, 2017, the Company’s corporate name was changed to Acro Biomedical Co., Ltd.

The Company has been engaged in the business of developing and marketing products that promote wellness and a healthy lifestyle since 2017. The Company’s initial business plan was to build a family waterpark in a state-of-the-art designed aquatic center in several locations throughout the Hawaiian Islands. The Company was not able to develop this business and it did not generate any revenues in this business. Following a change of control on January 30, 2017, the Company discontinued its efforts to develop aquatic centers. The Company intends to conduct research and development on its own proprietary products based on cordyceps sinensis. Cordyceps is a fungus that is used in traditional Chinese medicine. The Company’s first sale was made in September 2017. All of the Company’s sales to date have been sales of cordyceps related products and, commencing in the three months ended June 30, 2018, metallothionein MT-3 elizer, a protein that, in powder form, is used in health supplements.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unaudited Interim Financial Statements

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended September 30, 2017 have been omitted; these financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended September 30, 2017 included within the Company’s Annual Report on Form 10-K.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

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

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions.

 

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Revenue Recognition

The Company recognizes revenue from the sale of products in accordance with ASC 605, “Revenue Recognition.” The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and
iv)	Collection is reasonably assured.

Under these criteria, this generally means that the Company recognizes revenue when its products are delivered to customers in accordance with the written sales terms.

In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a converged standard, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 addresses the recognition of revenue based upon the payment and performance obligations of the seller and buyer. Since the Company sells products with no contingent payment obligations and no obligations on its part subsequent to the delivery of products, the adoption of Topic 606 will not change the Company’s revenue recognition. We will adopt Topic 606 on October 1, 2018.

Concentrations of Credit Risk

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables that it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high creditworthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits.

During the nine months ended June 30, 2018, all revenue was derived from seven sales contracts with two customers.

During the nine months ended June 30, 2018, all purchases were derived from seven purchase contracts with two suppliers.

There was no revenue or purchases during the nine months ended June 30, 2017.

Inventories

Inventories consist primarily of finished goods. Inventories are valued at the lower of cost or net realizable value. The Company determines cost on the basis of first-in, first-out methods. As of June 30, 2018 and September 30, 2017, the Company had $900,000 and $0 in inventories, respectively.

Financial Instruments

The carrying values of our financial instruments, including cash and cash equivalents, inventories, purchase deposit to vendor, prepaid expenses, accounts payable and accrued expenses, approximate their fair values due to the short-term maturities of these financial instruments.

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due to related parties due to their related party nature.

Recent Accounting Pronouncements

In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”. This ASU adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Cuts and Jobs Act was signed into law. The amendments are effective upon addition to the FASB Accounting Standards Codification. The Company is currently evaluating the impact of the adoption of this guidance on its financial statements.

 

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The Company’s management has considered all other recent accounting pronouncements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

NOTE 3 - INCOME TAXES

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law including lowering the corporate tax rate from 34% to 21%. The new rate is effective for tax years beginning after December 31, 2017. Accordingly, the new rate does not apply to the year ending September 30, 2018. Since the entire net operating loss at September 30, 2017 was used up in the nine months ending September 30, 2018, the new tax legislation does not affect the way the Company can use and carry forward net operating losses, at least in the year ending September 30, 2018.

The reconciliation of income tax expense at the U.S. statutory rate of 34%, to the Company’s effective tax rate is as follows:

	Nine Months Ended
	June 30,
	2018			2017
Income tax expense (benefit) at statutory rate	$	120,518		$	(14,193	)
Change of valuation allowance		(32,042	)		14,193
Income tax expense	$	88,476		$	-

NOTE 4 - RELATED PARTY TRANSACTIONS

During the nine months ended June 30, 2018, the Company’s chief executive officer paid a security deposit of $4,992 for the rent on behalf of the Company and a stockholder, who is not a 5% stockholder, paid various expenses of $99,065 on behalf of the Company. The loan is non-interest bearing and due on demand.

During the nine months ended June 30, 2017, the Company borrowed $47,015 from the former chief executive officer of the Company and repaid $2,379. On June 30, 2017, in connection with the sale by the former chief executive officer of his stock, a non-interest bearing demand loan of $28,372, was cancelled by the former chief executive officer and recorded as additional paid-in capital.

As of June 30, 2018 and September 30, 2017, the Company had due to related parties of $140,436 and $36,379, respectively.

NOTE 5 - COMMITMENTS AND CONTINGENCIES

On November 30, 2017, the Company entered into a lease agreement to rent a storage place in Hong Kong for a two-year term at HK$19,500 (approximately $2,500) per month. The Company paid $4,992 (HK$39,000) as a security deposit. For the three and nine months ended June 30, 2018, the Company incurred rent expense of $7,552 and $17,605, respectively. There were no rent expenses incurred in the nine months ended June 30, 2017.

NOTE 6 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events that have occurred after the date of the balance sheet through the date of issuance of these financial statements and determined that no subsequent event requires recognition or disclosure to the financial statements.

 

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

Overview

Since January 30, 2017, following a change of control, we have been seeking to engage in the business of developing and marketing nutritional products that promote wellness and a healthy lifestyle. In this connection we intend to conduct research and development on our own proprietary products based on cordyceps sinensis. Cordyceps is a fungus that is used in traditional Chinese medicine. Cordyceps sinensis has been described as a medicine in old Chinese medical books and Tibetan medicine. It is a rare combination of a caterpillar and a fungus and found at altitudes above 4500m in Sikkim. Commencing in the fourth quarter of the year ended September 30, 2017, when we made our first sales, we sold Cordycepin and cordyceps powder, to one customer. In the three months ended June 30, 2018, we sold metallothionein MT-3 elizer to one customer. The encoded protein in metallothionein MT-3 is a growth inhibitory factor, and reduced levels of the protein are observed in the brains of individuals with some metal-linked neurodegenerative disorders such as Alzheimer’s disease. We sell metallothionein MT-3 elizer in powder form. We may seek to market other products which we see as complimentary to our present products.

We generated revenues of $2,199,000 for the three months ended June 30, 2018 and $5,608,000 for the nine months ended June 30, 2018. We did not generate any revenue during the three or nine months ended June 30, 2017. During the nine months ended June 30, 2018, all revenue was from seven sales contracts with two customers, and all purchases were from seven purchase contracts with two suppliers. We are dependent upon these two customers, who are located in the Peoples’ Republic of China and Hong Kong, and these two suppliers, who are located in the Republic of China. We can give no assurance that we can or will be successful in developing marketable products or expanding our customer base.

At present, we have no full-time employees. We face significant risks in implementing our business plan including, but not limited to, our ability to raise the necessary financing either through the sale of debt or equity securities or through a loan facility, our ability to hire and retain qualified research and development, marketing and administrative personnel, our ability to develop products and to market in the United States and other western markets any products we may develop, our ability to comply with any government regulations relating to the manufacture, distribution and marketing any products we develop. We cannot assure you that we can or will generate revenue or profits in the future.

We require funds in order to expand our operations. During the nine months ended June 30, 2018, we financed our operations by advances from related parties. Although we intend to seek to raise funds in the equity market, we can give no assurance as to the availability or terms of any such financing. There is no trading market in our common stock, and any sale of our equity securities could result in material dilution to our stockholders. If we are not able to raise the necessary funds, we may be unable to expand our business.

Stock Distribution

On May 18, 2017, we effected a three-for-one stock distribution pursuant to which we issued two shares of common stock for each share of common stock outstanding on the record date, May 18, 2017. All share and per share information in this report retroactively reflect this stock distribution.

Results of Operations

For the three and nine months ended June 30, 2018 and 2017.

For the three months ended June 30, 2018, we had revenues of $2,199,000, a gross profit of $239,900, operating expenses of $63,674, principally professional fees relating to our SEC filings and consulting fees, income before income taxes of $176,226, and income tax of $59,917. As a result of the foregoing, our net income was $116,309, or $0.00 per share (basic and diluted).

 

10

For the nine months ended June 30, 2018, we had revenues of $5,608,000, a gross profit of $580,800, operating expenses of $226,336, principally professional fees relating to our SEC filings and consulting fees, income before income taxes of $354,464, and income tax of $88,476. Our tax loss carryforward at September 30, 2017 was used during the quarter ended March 31, 2018. As a result of the foregoing, our net income was $265,988, or $0.01 per share (basic and diluted).

During the three and nine months ended June 30, 2017, we were engaged in our prior business, which was attempting to develop aquatic center in the Hawaiian Islands, from which we generated no revenue and a net loss of $11,887, or ($0.00) per share (basic and diluted) for the three months ended June 30, 2017 and $41,743, or ($0.00) per share (basic and diluted) for the nine months ended June 30, 2017.

Liquidity and Capital Resources

The following table summarizes our changes in working capital from September 30, 2017 to June 30, 2018:

	June 30, 2018		September 30, 2017		Change		% Change
Current assets	$	1,005,115	$	548,310	$	456,805		83.3	%
Current liabilities	$	232,788	$	36,979	$	195,809		529.5	%
Working capital	$	772,327	$	511,331	$	260,996		51.0	%

The following table summarizes our cash flows for the nine months ended June 30, 2018 and 2017:

	Nine months Ended
	June 30, 2018			June 30, 2017
Cash used in operating activities	$	(136,252	)	$	(47,169	)
Cash provided by financing activities		104,057			44,636
Non-cash financing activities		--			28,372
Cash and cash equivalents end of period		4,615			--

Cash used in operating activities of $136,252 for the nine months ended June 30, 2018 reflected primarily our net income of $265,988, an increase in inventories and purchase deposit to vendor of $439,000, an increase in prepaid expenses of $50,000, which are principally professional fees, offset by an increase in income tax payable of $88,476. The cash used in operating activities for the nine months ended June 30, 2017 of $47,169 primarily reflected the $41,743 net loss for the period.

We did not use any cash in investing activities for the nine months ended June 30, 2018 or 2017.

Our cash flow from financing activities for the nine months ended June 30, 2018 consisted of advances from related parties, which consisted of the payment by our chief executive officer on our behalf of a rent security deposit of $4,992 and the payment by a stockholder on our behalf of various expenses totaling $99,065. For the nine months ended June 30, 2017, our cash flow from financing activities consisted of an advance from related parties of $47,015 offset by a repayment to a related party of $2,379.

We had no non-cash financing activities in the nine months ended June 30, 2018. Non-cash financing activities for the nine months ended June 30, 2017 related to the forgiveness of debt due to a related party of $28,372.

Critical Accounting Policy and Estimates

We prepare our financial statements in conformity with GAAP, which requires management to make certain estimates and assumptions and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes to be important at the time the financial statements are prepared and actual results could differ from our estimates and such differences could be material. We believe there have been no significant changes in accounting policies for the period ended June 30, 2018. See Note 2 to the statements in this Quarterly Report for a complete discussion of our significant accounting policies and estimates. Due to the need to make estimates about the effect of matters that are inherently uncertain, materially different amounts could be reported under different conditions or using different assumptions. On a regular basis, we review our critical accounting policies and how they are applied in the preparation of our financial statements.

Off-Balance Sheet Arrangements

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.

   

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ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Smaller reporting companies are not required to provide the information required by this item.

ITEM 4: CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of our disclosure controls and procedures (“Disclosure Controls”), as defined by Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of June 30, 2018, the end of the period covered by this Quarterly Report on Form 10-Q. The Disclosure Controls evaluation was done under the supervision and with the participation of management, including our chief executive officer and chief financial officer, which positions are held by the same person who assumed such positions on January 30, 2017 and who is our only employee and who does not work for us on a full-time basis. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon this evaluation, our chief executive officer and chief financial officer, concluded that, due to the inadequacy of our internal controls over financial reporting, our sole employee being our chief executive and financial officer and our limited internal audit function, our disclosure controls were not effective as of June 30, 2018, such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the president and treasurer, as appropriate to allow timely decisions regarding disclosure.

Changes in Internal Control over Financial Reporting

As reported in our annual report on Form 10-K for the year ended September 30, 2017, management has determined that our internal controls contain material weaknesses due to the absence of segregation of duties, as well as lack of qualified accounting personnel and excessive reliance on third party consultants for accounting, financial reporting and related activities. The lack of any separation of duties, with the same person, who is our only employee who serves as both chief executive officer and chief financial officer, who is our sole director and who does not have an accounting background and serves on a part-time basis, makes it unlikely that we will be able to implement effective internal controls over financial reporting in the near future.

During the period ended June 30, 2018, there was no change in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II – OTHER INFORMATION

ITEM 6: EXHIBITS

Exhibits

Exhibit Number	Description of Exhibits
31.1	Section 302 Certificate of Chief Executive Officer and Principal Financial Officer.
32.1	Section 906 Certificate of Chief Executive Officer and Principal Financial Officer.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.DEF	XBRL Taxonomy Definition Linkbase Document
101.LAB	XBRL Taxonomy Label Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document

 

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SIGNATURE

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.

	ACRO BIOMEDICAL CO., LTD.
Dated: August 14, 2018	By:	/s/ Pao-Chi Chu
		Pao-Chi Chu
		Chief Executive Officer and Chief Financial Officer

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EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Pao-Chi Chu certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Acro Biomedical Co., Ltd.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, 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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2018

By:	/s/ Pao-Chi Chu
	Pao-Chi Chu
	Chief Executive Officer and Chief Financial officer (Principal Executive Officer and Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Acro Biomedical Co., Ltd. (the “Company”) on Form 10-Q for period ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof, I, Pao-Chi Chu, chief executive officer and chief financial officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2018

By:	/s/ Pao-Chi Chu
	Pao-Chi Chu
	Chief Executive Officer and Chief Financial Officer (Principal Executive Officer and Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to Acro Biomedical Co., Ltd. and will be retained by Acro Biomedical Co., Ltd. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Aug. 13, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	ACRO BIOMEDICAL CO., LTD.
Entity Central Index Key	0001622996
Trading Symbol	acbm
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		47,660,000
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3

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Balance Sheets	Jun. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Current Assets
Cash and cash equivalents	$ 4,615	$ 36,810
Inventories	900,000
Purchase deposit to vendor	20,000	481,000
Prepaid expenses	80,500	30,500
Total Current Assets	1,005,115	548,310
Security deposit	4,992
TOTAL ASSETS	1,010,107	548,310
Current Liabilities
Accounts payable and accrued expenses	3,876	600
Income tax payable	88,476
Due to related parties	140,436	36,379
Total Current Liabilities	232,788	36,979
TOTAL LIABILITIES	232,788	36,979
Stockholders' Equity
Preferred stock: 25,000,000 authorized; $0.001 par value; no shares issued and outstanding	0	0
Common stock: 100,000,000 authorized; $0.001 par value; 47,660,000 shares issued and outstanding	47,660	47,660
Additional paid-in capital	557,912	557,912
Retained earnings (accumulated deficit)	171,747	(94,241)
Total Stockholders' Equity	777,319	511,331
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,010,107	$ 548,310

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Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	47,660,000	47,660,000
Common stock, shares outstanding	47,660,000	47,660,000

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Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenues	$ 2,199,000		$ 5,608,000
Cost of revenues	1,959,100		5,027,200
Gross profit	239,900		580,800
Operating expenses
General and administrative	63,674	$ 11,887	226,336	$ 41,743
Total operating expenses	63,674	11,887	226,336	41,743
Income (loss) before provision for income taxes	176,226	(11,887)	354,464	(41,743)
Provision for income taxes	59,917		88,476	0
Net income (loss)	$ 116,309	$ (11,887)	$ 265,988	$ (41,743)
Basic and diluted income (loss) per share of common stock (in dollars per share)	$ 0.00	$ (0.00)	$ 0.01	$ (0.00)
Weighted average number of shares of common stock outstanding (in shares)	47,660,000	47,160,000	47,660,000	47,160,000

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Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 265,988	$ (41,743)
Changes in operating assets and liabilities:
Inventories and purchase deposit to vendor	(439,000)
Prepaid expenses	(50,000)	(2,500)
Security deposit	(4,992)
Accounts payable and accrued expenses	3,276	(2,926)
Income tax payable	88,476
Net cash used in operating activities	(136,252)	(47,169)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties	104,057	47,015
Repayment to related parties		(2,379)
Net cash provided by financing activities	104,057	44,636
Net change in cash and cash equivalents	(32,195)	(2,533)
Cash at beginning of period	36,810	2,533
Cash at end of period	4,615
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	0	0
Cash paid for interest	$ 0	0
NON CASH INVESTING AND FINANCING ACTIVITIES
Debt forgiveness recorded in additional paid-in capital		$ 28,372

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ORGANIZATION AND DESCRIPTION OF BUSINESS

9 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Acro Biomedical Co., Ltd. (the “Company”) is a Nevada corporation incorporated on September 24, 2014 under the name Killer Waves Hawaii, Inc. On January 30, 2017, the Company’s corporate name was changed to Acro Biomedical Co., Ltd.

The Company has been engaged in the business of developing and marketing products that promote wellness and a healthy lifestyle since 2017. The Company’s initial business plan was to build a family waterpark in a state-of-the-art designed aquatic center in several locations throughout the Hawaiian Islands. The Company was not able to develop this business and it did not generate any revenues in this business. Following a change of control on January 30, 2017, the Company discontinued its efforts to develop aquatic centers. The Company intends to conduct research and development on its own proprietary products based on cordyceps sinensis. Cordyceps is a fungus that is used in traditional Chinese medicine. The Company’s first sale was made in September 2017. All of the Company’s sales to date have been sales of cordyceps related products and, commencing in the three months ended June 30, 2018, metallothionein MT-3 elizer, a protein that, in powder form, is used in health supplements.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unaudited Interim Financial Statements

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended September 30, 2017 have been omitted; these financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended September 30, 2017 included within the Company’s Annual Report on Form 10-K.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

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

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions.

Revenue Recognition

The Company recognizes revenue from the sale of products in accordance with ASC 605, “Revenue Recognition.” The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and
iv)	Collection is reasonably assured.

Under these criteria, this generally means that the Company recognizes revenue when its products are delivered to customers in accordance with the written sales terms.

In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a converged standard, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 addresses the recognition of revenue based upon the payment and performance obligations of the seller and buyer. Since the Company sells products with no contingent payment obligations and no obligations on its part subsequent to the delivery of products, the adoption of Topic 606 will not change the Company’s revenue recognition. We will adopt Topic 606 on October 1, 2018.

Concentrations of Credit Risk

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables that it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high creditworthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits.

During the nine months ended June 30, 2018, all revenue was derived from seven sales contracts with two customers.

During the nine months ended June 30, 2018, all purchases were derived from seven purchase contracts with two suppliers.

There was no revenue or purchases during the nine months ended June 30, 2017.

Inventories

Inventories consist primarily of finished goods. Inventories are valued at the lower of cost or net realizable value. The Company determines cost on the basis of first-in, first-out methods. As of June 30, 2018 and September 30, 2017, the Company had $900,000 and $0 in inventories, respectively.

Financial Instruments

The carrying values of our financial instruments, including cash and cash equivalents, inventories, purchase deposit to vendor, prepaid expenses, accounts payable and accrued expenses, approximate their fair values due to the short-term maturities of these financial instruments.

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due to related parties due to their related party nature.

Recent Accounting Pronouncements

In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”. This ASU adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Cuts and Jobs Act was signed into law. The amendments are effective upon addition to the FASB Accounting Standards Codification. The Company is currently evaluating the impact of the adoption of this guidance on its financial statements.

The Company’s management has considered all other recent accounting pronouncements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

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INCOME TAXES

9 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 3 - INCOME TAXES

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law including lowering the corporate tax rate from 34% to 21%. The new rate is effective for tax years beginning after December 31, 2017. Accordingly, the new rate does not apply to the year ending September 30, 2018. Since the entire net operating loss at September 30, 2017 was used up in the nine months ending September 30, 2018, the new tax legislation does not affect the way the Company can use and carry forward net operating losses, at least in the year ending September 30, 2018.

The reconciliation of income tax expense at the U.S. statutory rate of 34%, to the Company’s effective tax rate is as follows:

	Nine Months Ended
	June 30,
	2018			2017
Income tax expense (benefit) at statutory rate	$	120,518		$	(14,193	)
Change of valuation allowance		(32,042	)		14,193
Income tax expense	$	88,476		$	-

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RELATED PARTY TRANSACTIONS

9 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 4 - RELATED PARTY TRANSACTIONS

During the nine months ended June 30, 2018, the Company’s chief executive officer paid a security deposit of $4,992 for the rent on behalf of the Company and a stockholder, who is not a 5% stockholder, paid various expenses of $99,065 on behalf of the Company. The loan is non-interest bearing and due on demand.

During the nine months ended June 30, 2017, the Company borrowed $47,015 from the former chief executive officer of the Company and repaid $2,379. On June 30, 2017, in connection with the sale by the former chief executive officer of his stock, a non-interest bearing demand loan of $28,372, was cancelled by the former chief executive officer and recorded as additional paid-in capital.

As of June 30, 2018 and September 30, 2017, the Company had due to related parties of $140,436 and $36,379, respectively.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 5 - COMMITMENTS AND CONTINGENCIES

On November 30, 2017, the Company entered into a lease agreement to rent a storage place in Hong Kong for a two-year term at HK$19,500 (approximately $2,500) per month. The Company paid $4,992 (HK$39,000) as a security deposit. For the three and nine months ended June 30, 2018, the Company incurred rent expense of $7,552 and $17,605, respectively. There were no rent expenses incurred in the nine months ended June 30, 2017.

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SUBSEQUENT EVENTS

9 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 6 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events that have occurred after the date of the balance sheet through the date of issuance of these financial statements and determined that no subsequent event requires recognition or disclosure to the financial statements.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Unaudited Interim Financial Statements

Unaudited Interim Financial Statements

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended September 30, 2017 have been omitted; these financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended September 30, 2017 included within the Company’s Annual Report on Form 10-K.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

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

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

Related Parties

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue from the sale of products in accordance with ASC 605, “Revenue Recognition.” The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and
iv)	Collection is reasonably assured.

Under these criteria, this generally means that the Company recognizes revenue when its products are delivered to customers in accordance with the written sales terms.

In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a converged standard, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 addresses the recognition of revenue based upon the payment and performance obligations of the seller and buyer. Since the Company sells products with no contingent payment obligations and no obligations on its part subsequent to the delivery of products, the adoption of Topic 606 will not change the Company’s revenue recognition. We will adopt Topic 606 on October 1, 2018.

Concentrations of Credit Risk

Concentrations of Credit Risk

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables that it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high creditworthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits.

During the nine months ended June 30, 2018, all revenue was derived from seven sales contracts with two customers.

During the nine months ended June 30, 2018, all purchases were derived from seven purchase contracts with two suppliers.

There was no revenue or purchases during the nine months ended June 30, 2017.

Inventories

Inventories

Inventories consist primarily of finished goods. Inventories are valued at the lower of cost or net realizable value. The Company determines cost on the basis of first-in, first-out methods. As of June 30, 2018 and September 30, 2017, the Company had $900,000 and $0 in inventories, respectively.

Financial Instruments

Financial Instruments

The carrying values of our financial instruments, including cash and cash equivalents, inventories, purchase deposit to vendor, prepaid expenses, accounts payable and accrued expenses, approximate their fair values due to the short-term maturities of these financial instruments.

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due to related parties due to their related party nature.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”. This ASU adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Cuts and Jobs Act was signed into law. The amendments are effective upon addition to the FASB Accounting Standards Codification. The Company is currently evaluating the impact of the adoption of this guidance on its financial statements.

The Company’s management has considered all other recent accounting pronouncements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

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INCOME TAXES (Tables)

9 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

	Nine Months Ended
	June 30,
	2018			2017
Income tax expense (benefit) at statutory rate	$	120,518		$	(14,193	)
Change of valuation allowance		(32,042	)		14,193
Income tax expense	$	88,476		$	-

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals)	Jun. 30, 2018 USD ($)
Accounting Policies [Abstract]
Inventories	$ 900,000

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1)	9 Months Ended
	Jun. 30, 2018 Contract
Revenue from contract with customer | Customer concentration risk
Concentration Risk [Line Items]
Number of contracts	7
Concentration risk, customer	2
Purchases | Supplier concentration risk
Concentration Risk [Line Items]
Number of contracts	7
Concentration risk, supplier	2

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INCOME TAXES (Details) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income tax expense (benefit) at statutory rate		$ 120,518	$ (14,193)
Change of valuation allowance		(32,042)	14,193
Income tax expense	$ 59,917	$ 88,476	$ 0

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INCOME TAXES (Detail Textuals)	9 Months Ended
	Jun. 30, 2018
Income Tax [Line Items]
Statutory federal income tax rate	34.00%
Previous year
Income Tax [Line Items]
Statutory federal income tax rate	34.00%
Latest year
Income Tax [Line Items]
Statutory federal income tax rate	21.00%

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RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Related Party Transaction [Line Items]
Due to related parties	$ 140,436		$ 36,379
Company repaid		$ 2,379
Non-interest bearing demand loan		28,372
Chief executive officer
Related Party Transaction [Line Items]
Security deposit paid by related party	4,992
Company borrowed		47,015
Company repaid		2,379
Stockholder paid various expenses	$ 99,065
Former chief executive officer
Related Party Transaction [Line Items]
Non-interest bearing demand loan		$ 28,372

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COMMITMENTS AND CONTINGENCIES (Detail Textuals)	1 Months Ended		3 Months Ended	9 Months Ended
	Nov. 30, 2017 USD ($)	Nov. 30, 2017 HKD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Nov. 30, 2017 HKD ($)
Commitments and Contingencies Disclosure [Abstract]
Rent expense on office space	$ 2,500	$ 19,500	$ 7,552	$ 17,605
Lease term of office space	2 years				2 years
Security deposit	$ 4,992		$ 4,992	$ 4,992	$ 39,000