10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)
x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2017
o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT FOR THE TRANSITION PERIOD FROM __________ TO __________ COMMISSION FILE NUMBER 333-206853

EOS INC.

(Exact name of registrant as specified in its charter)

Nevada	30-0873246
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Room 519, 5F., No. 372, Linsen N. Road,

Zhongshan District,

Taipei City 104, Taiwan (R.O.C.)

(Address of principal executive offices, Zip Code)

011-886-2-25683278

(Registrant’s telephone number, including area code)

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

Copies to:

Thomas E. Stepp, Jr.
Stepp Law Corporation
15707 Rockfield Boulevard, Suite 101
Irvine, California 92618
Phone: (949) 660-9700 ext. 124
Fax: (949) 660-9010

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

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

 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. 

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

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

The number of shares of registrant’s common stock outstanding, as of May 5, 2017, is 64,122,997.

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4.	Controls and Procedures	12
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	13
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	13
Item 3.	Defaults Upon Senior Securities	13
Item 4.	Mine Safety Disclosures	13
Item 5.	Other Information	13
Item 6.	Exhibits	15
	SIGNATURES	16

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Financial Statements:
Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016	4
Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016	5
Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016	6
Notes to Consolidated Financial Statements	7 - 10

 

3

EOS, INC. AND SUBSIDIARY

CONSOLIDATEDBALANCE SHEETS

	March 31,			December 31,
	2017			2016
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	14,481		$	35,696
Prepaid expenses		10,172			82
Total current assets		24,653			35,778
Total Assets	$	24,653		$	35,778
Liabilities and Stockholders' Equity
Current Liabilities
Accrued expenses		27,000			13,517
Due to shareholders		175,912			175,912
Total current liabilities		202,912			189,429
Total liabilities		202,912			189,429
Stockholders' Equity
Common stock, $0.001 par value;
75,000,000 shares authorized,
64,122,997 shares issued and outstanding		64,123			64,123
Additional paid-in capital		90,000			90,000
Accumulated deficit		(332,709	)		(307,654	)
Accumulated other comprehensive income (loss)		327			(120	)
Total stockholders' equity		(178,259	)		(153,651	)
Total Liabilities and Stockholders' Equity	$	24,653		$	35,778

 

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

4

EOS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2017 AND 2016

(UNAUDITED)

	March 31,			March 31,
	2017			2016
Net revenue	$	-		$	-
General and administrative expenses		25,055			128,158
Loss from operations		(25,055	)		(128,158	)
Loss before income taxes		(25,055	)		(128,158	)
Provision for income taxes		-			-
Net loss	$	(25,055	)	$	(128,158	)
Foreign currency translation adjustment		447			-
Comprehensive Income (Loss)		(24,608	)		(128,158	)
Net loss per share
Basic and diluted	$	(0.00	)	$	(0.00	)
Weighted Average Shares Outstanding:
Basic and diluted		64,122,997			58,188,931

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

5

EOS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2017 AND 2016
(UNAUDITED)
	March 31,			March 31,
	2017			2016
Cash Flows from Operating Activities
Net loss	$	(25,055	)	$	(128,158	)
Changes in assets and liabilities:
Decrease (Increase) in prepaid expenses		(10,090	)		-
Increase (decrease) in accrued expenses		13,483			28,138
Net cash used in operating activities		(21,662	)		(100,020	)
Cash Flows from Financing Activities
Proceeds from issuance of common stock		-			100,000
Advance from officers		-			100,000
Repayment of loan from officers		-			(64,088	)
Net cash provided by financing activities		-			135,912
Effect of exchange rate changes on cash and cash equivalents		447			-
Net (decrease) increase in cash and cash equivalents		(21,215	)		35,892
Cash and Cash Equivalents
Beginning		35,696			54,132
Ending	$	14,481		$	90,024
Supplemental Disclosure of Cash Flows
Cash paid during the year for:
Interest	$	-		$	-
Income taxes	$	-		$	-

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

6

EOS, INC. AND SUBSIDIARY

NOTES TO CONSOLIDAED FINANCIAL STATEMENTS
MARCH 31, 2017

(UNAUDITED)

Note 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data were derived from audited consolidated financial statements, but do not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures, and other 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, 2016.

Organization

EOS Inc., a company in the developmental stage, was incorporated on April 3, 2015 in the State of Nevada. The Company has conducted limited business operations and had no revenues from operations since its inception. The Company’s business plan is to market and distribute skin care products, including masks and serums.

On November 18, 2016, the Company has set up a wholly-owned subsidiary in Taiwan to assist the Company to promote the business in Taiwan.

Principles of Consolidation

The consolidated unaudited financial statements include the accounts of EOS Inc. and its wholly owned subsidiary in Taiwan. All material intercompany accounts, transactions, and profits have been eliminated in consolidation.

The functional currency of the subsidiary in Taiwan is the New Taiwan dollars, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, and “NT$” and “NT dollars” mean New Taiwan dollars. 

Going Concern

These unaudited consolidated financial statements were prepared on the basis of accounting principles applicable to going concern, which assumes the realization of assets and discharge of liabilities in the normal course of business. As shown in the accompanying unaudited consolidated financial statements, the Company had accumulated deficit of $332,709 and $307,654 as of March 31, 2017 and December 31, 2016, respectively, and it had no revenue from operations since its incorporation.

7

The Company faces all the risks common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams, and difficulties in managing growth. The Company's losses raise substantial doubt about its ability to continue as a going concern. The Company's financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.

The Company is currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. The Company believes its current and future plans enable it to continue as a going concern. The Company's ability to achieve these objectives cannot be determined at this time. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles 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 and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Classification

Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net loss nor accumulated deficit.

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

Net Income (loss) per Share

Basic income (loss) per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. At March 31, 2017 and December 31, 2016, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

8

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its result of operations, financial position or cash flow.

Subsequent events

Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of March 31, 2017 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”

Note 2. ACCRUED EXPENSES

Accrued expenses consist of the following:

	March 31, 2017		December 31, 2016
Accrued professional fees	$	27,000	$	13,517
	$	27,000	$	13,517

Note 3. DUE TO SHAREHOLDERS

The Company has advanced funds from its director and shareholder for working capital purposes. As of March 31, 2017 and December 31, 2016, there were $175,912 and $175,912 advances outstanding, respectively. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after 30 days written notice by the officer and shareholder.

Note 4. INCOME TAXES

United States

The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the period. The applicable income tax rate for the Company was 34% for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, the Company had net operating loss carry forwards of approximately $332,709 that may be available to reduce future years’ taxable income through 2037. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100 % valuation allowance has offset deferred tax asset resulting from the net operating losses.

Taiwan

The subsidiary of EOS Inc. is incorporated in Taiwan. The Taiwan Income Tax Law imposes a unified enterprise income tax rate of 17% on all enterprises with taxable income greater than approximately $3,660 (NT$120,000). No income tax liabilities existed as of March 31, 2017 and December 31, 2016 due to the Company’s continuing operating losses.

9

Provision for income tax consists of the following:

	For the Three Months Ended			For the Three Months Ended
	March 31,			March 31,
	2017			2016
Current
U.S.	$	-		$	-
Taiwan		-			-
Deferred
U.S.
Deferred tax assets for NOL carryforwards		(7,799	)		(43,574	)
Valuation allowance		7,799			43,574
Net changes in deferred income tax under non-current portion		-			-

The following is a reconciliation of the statutory tax rate to the effective tax rate:

	For the Three Months Ended			For the Three Months Ended
	March 31,			March 31,
	2017			2016
U.S. statutory income tax rate		34			34
Foreign statutory income tax rate difference		(17	)		(17	)
Changes in valuation allowance		(17	)		(17	)
Effective income tax rate		0			0

Significant components of the Company’s deferred taxes as of March 31, 2017 and December 31 2016 were as follows:

	March 31,			December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	111,766		$	103,967
Less: Valuation allowance		(111,766	)		(103,967	)
Deferred tax assets, net	$	-		$	-

******

10

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operation.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, including this discussion and analysis by management, contains or incorporates forward-looking statements. All statements other than statements of historical fact made in report are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. These forward-looking statements can be identified by the use of words such as “believes,” “estimates,” “could,” “possibly,” “probably,” anticipates,” “projects,” “expects,” “may,” “will,” or “should” or other variations or similar words. No assurances can be given that the future results anticipated by the forward-looking statements will be achieved. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations.

The following discussion and analysis should be read in conjunction with our financial statements, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management.

Three months ended March 31, 2017 compared to the three months ended March 31, 2016

Net revenue for the three months ended March 31, 2017, and for the three months ended March 31, 2016, was $0.

General and administrative expenses primarily consist of legal, accounting, and professional service fees. General and administrative expenses for the three months ended March 31, 2017, were $25,055, as compared to $128,158 for the three months ended March 31, 2016. The decrease in those expenses was primarily attributable to a decrease in professional service fees for the quarter ended March 31, 2017.

Our net loss was $25,055 for the three months ended March 31, 2017, as compared to $128,158 for the three months ended March 31, 2016. The decrease in net loss was a result of the decrease in general and administrative expenses.

Liquidity and Capital Resources

Cash and cash equivalents were $14,481 at March 31, 2017. Our total current assets were $24,653 at March 31, 2017. Our total current liabilities were $202,912 at March 31, 2017.

We had negative working capital of $178,259 at March 31, 2017, compared to negative working capital of $153,651 at December 31, 2016. The increase in negative working capital was primarily due to increases in accrued expenses and prepaid professional service fees for the three months ended March 31, 2017.

Net cash used in operating activities during the three months ended March 31, 2017, was $(21,662), compared to $(100,020) for the three months ended March 31, 2016. The decrease in the cash used in operating activities was primarily due to the decrease in net loss and increases in accrued expenses and prepaid professional service fees for the three months ended March 31, 2017.

Net cash provided by financing activities for the three months ended March 31, 2017 was $0, as compared to $135,912 for the three months ended March 31, 2016. The decrease was because we had no financing activities during the three months ended March 31, 2017.

11

Net change in cash and cash equivalents was a decrease of $(21,215) for the three months ended March 31, 2017, compared to an increase of $35,892 for the three months ended March 31, 2016, which was primarily due to no cash proceeds from financing activities for the three months ended March 31, 2017.

Inflation

Our opinion is that inflation has not had a material effect on our operations and is not expected to have any material effect on our operations.

Climate Change

Our opinion is that neither climate change, nor governmental regulations related to climate change, have had, or are expected to have, any material effect on our operations.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

As a smaller reporting company, we are not required to provide this information.

Item 4.Controls and Procedures.

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of end of the period covered by this report to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is (1) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure; and (2) recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Securities and Exchange Commission.

There was no change to our internal controls or in other factors that could affect these controls during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

12

PART II – OTHER INFORMATION

Item 1.Legal Proceedings.

None.

Item 1A. Risk Factors.

As a smaller reporting company, we are not required to provide this information.

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.

Subsequent Events

Effective April 3, 2017, Yu Cheng Yang resigned as president, secretary, and treasurer of the Company.

Effective April 3, 2017, the Company’s board of directors appointed He-Siang Yang as its president, secretary, treasurer and a member of its board of directors. He-Siang Yang is the father of Yu Cheng Yang, the Company’s former president, secretary, and treasurer and who, currently, is a member of the Company’s board of directors.

Effective April 3, 2017, the Company appointed Lai Chen Kwok as a member of its board of directors.

13

He-Siang Yang

Mr. Yang is 64 years old. In 1976, Mr. Yang obtained a Bachelor of the Arts degree in mathematics from the National Taiwan Ocean University in Taiwan. From 2009 through 2015, Mr. Yang served as the president of U-Power in Taipei, Taiwan. U-Power is in the business of marketing and promoting its clients products. Mr. Yang performed those duties normally associated with that of a president, including, but not limited to company development, management and business oversight. From 2015 to the present, Mr. Yang has been the president of EOS Trading Company Limited, a Hong Kong company. EOS Trading Company Limited is exports and imports consumer products into and out of Taiwan. As of December 31, 2016, EOS Trading Company Limited is not an affiliate of the Company.

During the last 10 years, Mr. Yang has never been involved in any legal or regulatory proceedings nor has Mr. Yang been a director of a public company. Mr. Yang is the father of Yu Cheng Yang, the Company’s former president, secretary, and treasurer and who, currently, is a member of the Company’s board of directors.

As Mr. Yang has an extensive background in company development, management, marketing and consumer product distribution, the Company has determined it is in its best interest to appoint Mr. Yang as president, secretary, treasurer, and a member of its board of directors. As of the date of this filing, the Company has not entered into any material arrangements or agreements with Mr. Yang relating to compensation or otherwise.

Lai Chen Kwok

Ms. Kwok is 71 years old. In 1970, Ms. Kwok obtained a Bachelor of the Arts degree in English from the Overseas Chinese University, a private university in Taiwan. From 2008 through 2015, Ms. Kwok served as a financial planner at Prudential Hong Kong Limited, a Hong Kong company primarily dealing in the insurance business.

During the last 10 years, Ms. Kwok has never been involved in any legal or regulatory proceedings, nor has Ms. Kwok been a director of a public company.

As Ms. Kwok has developed a large networking base and was a top sales representative at Prudential Hong Kong Limited, the Company has determined it is in the best interest of the Company and its shareholders that Ms. Kwok be appointed as a member of its board of directors. As of the date of this filing, the Company has not entered into any material arrangements or agreements with Ms. Kwok relating to compensation or otherwise.

14

Item 6. Exhibits.

The following exhibits are filed as part of this quarterly report, pursuant to Item 601 of Regulation S-K. All exhibits are attached hereto unless otherwise noted.

Exhibit Number	Description
3.1*	Articles of Incorporation
3.2*	Certificate of Amendment to Articles of Incorporation
3.3*	Bylaws
3.4**	Certificate of Correction of Articles of Incorporation
10.1*	Distribution Agreement dated May 1, 2015 between A.C. (USA) Inc. and the Company
31***	Certification by Principal Executive Officer and Principal Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.***
32***	Certification by Principal Executive Officer and Principal Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code.***

_______ 

* Included as an exhibit with that Registration Statement on Form S-1 filed with the SEC on September 10, 2015.

** Included as an exhibit with that Registration Statement on Form S-1/A filed with the SEC on October 21, 2015.

*** Filed herewith.

15

SIGNATURES

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

	EOS Inc.
Date: May 15, 2017	By:	/s/ He-Siang Yang
		He-Siang Yang
		Principal Executive Officer, Principal Financial Officer, President and Chairman of the Board

16

EX-31

EXHIBIT 31

CERTIFICATION

I, He-Siang Yang, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of EOS Inc. (the “registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of 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.

May 15, 2017

/s/ He-Siang Yang

He-Siang Yang

Principal Executive Officer and Principal Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of EOS Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned officer of the Company hereby certifies, pursuant to 18 U.S.C. section 906 of the Sarbanes-Oxley Act of 2002, to such officer’s knowledge that:

(i)	the Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (subject to the Company's position prevailing in regard to the remaining unresolved SEC comment, as more fully described in the Report); and
(ii)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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

May 15, 2017
	/s/ He-Siang Yang
	He-Siang Yang
	Principal Executive Officer and Principal Financial Officer

XML

Document Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	EOS INC.
Entity Central Index Key	0001651958
Trading Symbol	eoin
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		64,122,997
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 14,481	$ 35,696
Prepaid expenses	10,172	82
Total current assets	24,653	35,778
Total Assets	24,653	35,778
Current Liabilities
Accrued expenses	27,000	13,517
Due to shareholders	175,912	175,912
Total current liabilities	202,912	189,429
Total liabilities	202,912	189,429
Stockholders' Equity
Common stock, $0.001 par value; 75,000,000 shares authorized, 64,122,997 shares issued and outstanding	64,123	64,123
Additional paid-in capital	90,000	90,000
Accumulated deficit	(332,709)	(307,654)
Accumulated other comprehensive income (loss)	327	(120)
Total stockholders' equity	(178,259)	(153,651)
Total Liabilities and Stockholders' Equity	$ 24,653	$ 35,778

XML

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock shares issued (in shares)	64,122,997	64,122,997
Common stock, shares outstanding (in shares)	64,122,997	64,122,997

XML

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net revenue
General and administrative expenses	25,055	128,158
Loss from operations	(25,055)	(128,158)
Loss before income taxes	(25,055)	(128,158)
Provision for income taxes
Net loss	(25,055)	(128,158)
Foreign currency translation adjustment	447
Comprehensive Income (Loss)	$ (24,608)	$ (128,158)
Net loss per share
Basic and diluted	$ (0.00)	$ (0.00)
Weighted Average Shares Outstanding:
Basic and diluted	64,122,997	58,188,931

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities
Net loss	$ (25,055)	$ (128,158)
Changes in assets and liabilities:
Decrease (Increase) in prepaid expenses	(10,090)
Increase (decrease) in accrued expenses	13,483	28,138
Net cash used in operating activities	(21,662)	(100,020)
Cash Flows from Financing Activities
Proceeds from issuance of common stock		100,000
Advance from officers		100,000
Repayment of loan from officers		(64,088)
Net cash provided by financing activities		135,912
Effect of exchange rate changes on cash and cash equivalents	447
Net (decrease) increase in cash and cash equivalents	(21,215)	35,892
Cash and Cash Equivalents
Beginning	35,696	54,132
Ending	14,481	90,024
Cash paid during the year for:
Interest
Income taxes

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NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2017

Nature of Operations and Summary of Accounting Policies [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

Note 1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data were derived from audited consolidated financial statements, but do not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures, and other 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, 2016.

Organization

EOS Inc., a company in the developmental stage, was incorporated on April 3, 2015 in the State of Nevada. The Company has conducted limited business operations and had no revenues from operations since its inception. The Company’s business plan is to market and distribute skin care products, including masks and serums.

On November 18, 2016, the Company has set up a wholly-owned subsidiary in Taiwan to assist the Company to promote the business in Taiwan.

Principles of Consolidation

The consolidated unaudited financial statements include the accounts of EOS Inc. and its wholly owned subsidiary in Taiwan. All material intercompany accounts, transactions, and profits have been eliminated in consolidation.

The functional currency of the subsidiary in Taiwan is the New Taiwan dollars, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, and “NT$” and “NT dollars” mean New Taiwan dollars. 

Going Concern

These unaudited consolidated financial statements were prepared on the basis of accounting principles applicable to going concern, which assumes the realization of assets and discharge of liabilities in the normal course of business. As shown in the accompanying unaudited consolidated financial statements, the Company had accumulated deficit of $332,709 and $307,654 as of March 31, 2017 and December 31, 2016, respectively, and it had no revenue from operations since its incorporation. 

The Company faces all the risks common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams, and difficulties in managing growth. The Company's losses raise substantial doubt about its ability to continue as a going concern. The Company's financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.

The Company is currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. The Company believes its current and future plans enable it to continue as a going concern. The Company's ability to achieve these objectives cannot be determined at this time. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles 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 and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Classification

Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net loss nor accumulated deficit.

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

Net Income (loss) per Share

Basic income (loss) per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. At March 31, 2017 and December 31, 2016, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized. 

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its result of operations, financial position or cash flow.

Subsequent events

Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of March 31, 2017 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”

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ACCRUED EXPENSES

3 Months Ended

Mar. 31, 2017

Payables and Accruals [Abstract]

ACCRUED EXPENSES

Note 2. ACCRUED EXPENSES

Accrued expenses consist of the following:

	March 31, 2017		December 31, 2016
Accrued professional fees	$	27,000	$	13,517
	$	27,000	$	13,517

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DUE TO SHAREHOLDERS

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

DUE TO SHAREHOLDERS

Note 3. DUE TO SHAREHOLDERS

The Company has advanced funds from its director and shareholder for working capital purposes. As of March 31, 2017 and December 31, 2016, there were $175,912 and $175,912 advances outstanding, respectively. The Company has agreed that the outstanding balances bear 0% interest rate and are due upon demand after 30 days written notice by the officer and shareholder.

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INCOME TAXES

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 4. INCOME TAXES

United States

The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the period. The applicable income tax rate for the Company was 34% for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, the Company had net operating loss carry forwards of approximately $332,709 that may be available to reduce future years’ taxable income through 2037. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100 % valuation allowance has offset deferred tax asset resulting from the net operating losses.

Taiwan

The subsidiary of EOS Inc. is incorporated in Taiwan. The Taiwan Income Tax Law imposes a unified enterprise income tax rate of 17% on all enterprises with taxable income greater than approximately $3,660 (NT$120,000). No income tax liabilities existed as of March 31, 2017 and December 31, 2016 due to the Company’s continuing operating losses.

Provision for income tax consists of the following:

	For the Three Months Ended			For the Three Months Ended
	March 31,			March 31,
	2017			2016
Current
U.S.	$	-		$	-
Taiwan		-			-
Deferred
U.S.
Deferred tax assets for NOL carryforwards		(7,799	)		(43,574	)
Valuation allowance		7,799			43,574
Net changes in deferred income tax under non-current portion		-			-

The following is a reconciliation of the statutory tax rate to the effective tax rate:

	For the Three Months Ended			For the Three Months Ended
	March 31,			March 31,
	2017			2016
U.S. statutory income tax rate		34			34
Foreign statutory income tax rate difference		(17	)		(17	)
Changes in valuation allowance		(17	)		(17	)
Effective income tax rate		0			0

Significant components of the Company’s deferred taxes as of March 31, 2017 and December 31 2016 were as follows:

	March 31,			December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	111,766		$	103,967
Less: Valuation allowance		(111,766	)		(103,967	)
Deferred tax assets, net	$	-		$	-

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NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2017

Nature of Operations and Summary of Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data were derived from audited consolidated financial statements, but do not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures, and other 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, 2016.

Principles of Consolidation

Principles of Consolidation

The consolidated unaudited financial statements include the accounts of EOS Inc. and its wholly owned subsidiary in Taiwan. All material intercompany accounts, transactions, and profits have been eliminated in consolidation.

The functional currency of the subsidiary in Taiwan is the New Taiwan dollars, however the accompanying unaudited consolidated financial statements have been translated and presented in United States Dollars ($). In the accompanying unaudited consolidated financial statements and notes, “$”, “US$” and “U.S. dollars” mean United States dollars, and “NT$” and “NT dollars” mean New Taiwan dollars.

Going Concern

Going Concern

These unaudited consolidated financial statements were prepared on the basis of accounting principles applicable to going concern, which assumes the realization of assets and discharge of liabilities in the normal course of business. As shown in the accompanying unaudited consolidated financial statements, the Company had accumulated deficit of $332,709 and $307,654 as of March 31, 2017 and December 31, 2016, respectively, and it had no revenue from operations since its incorporation.

The Company faces all the risks common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure levels, uncertain revenue streams, and difficulties in managing growth. The Company's losses raise substantial doubt about its ability to continue as a going concern. The Company's financial statements do not reflect any adjustments that might result from the outcome of this uncertainty.

The Company is currently addressing its liquidity issue by continually seeking investment capital through private placements of common stock and debt. The Company believes its current and future plans enable it to continue as a going concern. The Company's ability to achieve these objectives cannot be determined at this time. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts which may differ from those in the accompanying consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles 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 and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Classification

Classification

Certain classifications have been made to the prior year financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net loss nor accumulated deficit.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

Net Income (loss) per Share

Net Income (loss) per Share

Basic income (loss) per share is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted income per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents, and potentially dilutive securities outstanding during each period. At March 31, 2017 and December 31, 2016, the Company does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented.

Income Taxes

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management, it is more likely than not that some or all of any deferred tax assets will not be realized.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its result of operations, financial position or cash flow.

Subsequent events

Subsequent events

Management has evaluated subsequent events through the date which the financial statements are available to be issued. All subsequent events requiring recognition as of March 31, 2017 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”

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ACCRUED EXPENSES (Tables)

3 Months Ended

Mar. 31, 2017

Payables and Accruals [Abstract]

Schedule of Accrued expenses

	March 31, 2017		December 31, 2016
Accrued professional fees	$	27,000	$	13,517
	$	27,000	$	13,517

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of provision for income tax

	For the Three Months Ended			For the Three Months Ended
	March 31,			March 31,
	2017			2016
Current
U.S.	$	-		$	-
Taiwan		-			-
Deferred
U.S.
Deferred tax assets for NOL carryforwards		(7,799	)		(43,574	)
Valuation allowance		7,799			43,574
Net changes in deferred income tax under non-current portion		-			-

Schedule of reconciliation of statutory tax rate to effective tax rate

	For the Three Months Ended			For the Three Months Ended
	March 31,			March 31,
	2017			2016
U.S. statutory income tax rate		34			34
Foreign statutory income tax rate difference		(17	)		(17	)
Changes in valuation allowance		(17	)		(17	)
Effective income tax rate		0			0

Schedule of components of the deferred taxes

	March 31,			December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	111,766		$	103,967
Less: Valuation allowance		(111,766	)		(103,967	)
Deferred tax assets, net	$	-		$	-

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NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING POLICIES (Detail Textuals) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Nature of Operations and Summary of Accounting Policies [Abstract]
Accumulated deficit	$ (332,709)	$ (307,654)

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ACCRUED EXPENSES (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued professional fees	$ 27,000	$ 13,517
Accrued expenses	$ 27,000	$ 13,517

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DUE TO SHAREHOLDERS (Detail Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Related Party Transactions [Abstract]
Advances outstanding of officer and shareholder	$ 175,912	$ 175,912
Interest rate of outstanding balances	0.00%
Due of written notice by officer and shareholder	30 days

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INCOME TAXES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Current
U.S.
Taiwan
Deferred
U.S.
Deferred
Deferred tax assets for NOL carryforwards	(7,799)	(43,574)
Valuation allowance	7,799	43,574
Net changes in deferred income tax under non-current portion

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INCOME TAXES (Details 1)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
U.S. statutory income tax rate	34.00%	34.00%
Foreign statutory income tax rate difference	(17.00%)	(17.00%)
Changes in valuation allowance	(17.00%)	(17.00%)
Effective income tax rate	0.00%	0.00%

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INCOME TAXES (Details 2) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss carryforwards	$ 111,766	$ 103,967
Less: Valuation allowance	(111,766)	(103,967)
Deferred tax assets, net

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INCOME TAXES (Detail Textuals)	3 Months Ended
	Mar. 31, 2017 USD ($)	Mar. 31, 2017 TWD	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Applicable income tax rate	34.00%	34.00%	34.00%
Operating loss carryforwards	$ 332,709
Net operating loss carry forwards, Expiration date	Dec. 31, 2037	Dec. 31, 2037
Percentage of valuation allowance offset deferred tax asset	100.00%	100.00%
Foreign statutory income tax rate	17.00%	17.00%	17.00%
Threshold limit for foreign statutory income tax amount	$ 3,660	TWD 120,000