CERTAIN RISKS AND CONCENTRATIONS

3 Months Ended

Mar. 31, 2021

CERTAIN RISKS AND CONCENTRATIONS

CERTAIN RISKS AND CONCENTRATIONS

NOTE 13 - CERTAIN RISKS AND CONCENTRATIONS

Credit risk

At March 31, 2021 and December 31, 2020, the Company’s cash and cash equivalents included bank deposits in accounts maintained in Thailand. The Company does not experience any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts.

Major customer

OBON Thailand’s revenues for the three months ended March 31, 2021 of $962 were derived from one customer, which individually accounted for 100% of the Company’s revenues.

Foreign currency risk

As a result of the operations in Thailand, the Company is exposed to foreign exchange risk arising from the currency exposures primarily with respect to THB. The Company’s VIEs with operations in Thailand use their respective local currency, THB, as their functional currency. Although a majority of their total revenues, their payroll and other operating expenses are incurred and paid in Thai baht, the payment of R&D services provided by Digiwork Korea is required to be made in the U.S. dollar. As of March 31, 2021 and December 31, 2020, Digiwork Thailand owed Enigma BVI $849,998 and $1,000,000 respectively, which Enigma BVI has settled the payment of R&D services provided by Digiwork Korea.